DOJ Cracks Down on North Korea's Cryptocurrency Network by Seizing $15M in Tether

The U.S. Department of Justice has confiscated $15 million worth of Tether's

associated with North Korean cybercriminals, representing a major step up in efforts to disrupt North Korea’s use of cryptocurrency to evade sanctions. This action, , highlights a broader approach aimed at dismantling the networks and intermediaries that facilitate the regime’s illegal crypto operations.

The Justice Department’s intervention targets North Korea’s exploitation of stolen American identities and remote work arrangements to divert money from U.S. businesses. These so-called “domestic helpers” helped North Korean operatives secure jobs, disguise their online locations, and funnel salaries into financial channels linked to the Democratic People’s Republic of Korea (DPRK).

that such methods enable North Korea to raise millions for its weapons development while sidestepping international sanctions.

At the heart of this seizure is Advanced Persistent Threat 38 (APT38), a group linked to some of the largest cryptocurrency thefts, including attacks on exchanges and decentralized finance (DeFi) platforms. The $15 million in frozen USDT joins a growing tally of digital assets seized by U.S. officials from state-sponsored hackers and ransomware groups. This move is part of a wider “Scam Center Strike Force” campaign , through which U.S. authorities recently reclaimed $80 million in stolen crypto.

This enforcement wave draws attention to the increasing risks facing stablecoins like USDT, which are vital for trading and settlements on offshore platforms. Regulators are putting these assets under greater scrutiny for their potential role in illegal finance, and the DOJ’s actions show that on-chain assets are not immune to law enforcement. For the market, the trend of freezing and confiscating crypto assets brings three main challenges:

, reduced liquidity in specific trading pairs, and a regulatory drive for more rigorous counterparty verification.

In addition, the Trump administration’s suggestion to create a federal “bitcoin strategic reserve”—holding seized digital currencies as long-term assets—adds further uncertainty. Although the proposal seeks to avoid selling off confiscated coins, there are still unresolved legal issues, such as the need for congressional approval.

, strengthening the scarcity argument for and other digital currencies.

International collaboration is also ramping up. A recent joint operation between the U.S. and Thailand resulted in the seizure of $12 million in USDT from a Southeast Asian scam syndicate, illustrating the growing cross-border fight against crypto-related crime.

the importance of private sector involvement in enforcement, setting examples for future regulatory practices.

For crypto investors, the DOJ’s recent actions point to a changing environment. While short-term volatility and compliance expenses may increase, ongoing crackdowns on state-sponsored theft could ultimately boost confidence in blockchain markets. The North Korea case, however,

and geopolitical concerns—factors that will continue to influence liquidity, regulatory standards, and government holdings of digital assets in the years ahead.