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Part of Tornado Cash is under scrutiny for being used by the Lazarus Group for illicit state operations linked to North Korea and involving the U.S. Treasury.

How could the monitoring of illicit IT funding affect Kim Yo-jong?

Possible What happens if… A possibility worth considering, not a forecast.

North Korean regime faces financial strain as U.S. Treasury tracks illicit IT funding The U.S. Treasury has estimated that over $800 million was sent to North Korea in fiscal year 2024 through a network of U.S.-based IT schemes. This illicit finance was used to fund the regime's nuclear weapons and ballistic missile programs. As a senior official of the North Korean government, Kim Yo-jong is tied to the state's strategic and financial operations. The increased monitoring and potential disruption of this major funding stream could place significant strain on the regime's ability to finance its military and state functions.

Reported by 1 independent outlet Written Tuesday
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How it reaches Kim Yo-jong

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The facts so far

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  • The U.S. Treasury estimated that more than $800 million was sent to North Korea in fiscal year 2024.fox4news.com
  • The scheme involved seizing more than 185 laptops and devices from around 40 locations across Texas.fox4news.com
  • North Korean IT workers funnel 85% to 90% of their earnings directly to the North Korean government.fox4news.com
  • The scheme aimed to fund the regime's nuclear weapons and ballistic missile programs.fox4news.com

Why it matters

The ability of the North Korean regime to fund its military and strategic programs is central to its geopolitical standing and international relations. The $800 million estimated through this single IT scheme represents a substantial portion of the illicit revenue stream, and its disruption could force the regime to adjust its financial operations and resource allocation.

This activity is part of a broader pattern of illicit finance monitored by the U.S. Treasury, which targets state-sponsored activities. The investigation is ongoing, with authorities expecting to issue federal indictments against the U.S.-based facilitators, signaling a sustained effort to choke off these critical funding sources.

What we don't know yet

  • Will the U.S. Treasury successfully disrupt all major illicit funding streams used by the regime?
  • How will the regime adjust its military funding if these IT schemes are shut down?

What would change this answer

Federal indictments are issued against the U.S.-based facilitatorsThis would confirm the effectiveness of the monitoring and increase the likelihood of a significant reduction in the regime's illicit revenue.
North Korea announces a major shift in its military or diplomatic policyThis could indicate that the regime is already feeling the financial pressure from the disruption of its funding sources.

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The full eventU.S. Treasury estimates $800M sent to North Korea via Texas IT scheme Everything aboutKim Yo-jong

Brind's analysis is written by AI from the reporting linked above and can be wrong. This explainer is a possibility worth considering, not a forecast: steps marked as Brind's reasoning are not stated in the reporting. It is not investment advice; do your own research.