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A major North Korea IT worker scheme has led to the sentencing of two U.S. nationals who helped facilitate fraudulent remote employment operations that generated millions of dollars for the Democratic People’s Republic of Korea (DPRK), according to the U.S. Department of Justice. The case highlights how foreign actors exploited remote work systems, stolen identities, and U.S.-based infrastructure to infiltrate companies and access sensitive data.

Sentencing in North Korea IT Worker Scheme

Kejia Wang, 42, and Zhenxing Wang, 39, were sentenced for their roles in supporting the North Korea IT worker scheme, which placed overseas operatives into jobs at more than 100 U.S. companies. Kejia Wang received a sentence of 108 months in prison, while Zhenxing Wang was sentenced to 92 months. Both had pleaded guilty to multiple charges, including conspiracy to commit wire fraud and money laundering. The court also ordered three years of supervised release and financial penalties, including forfeiture of $600,000. Officials confirmed that the scheme generated more than $5 million in revenue for the DPRK, with at least $400,000 already recovered by authorities.

How the Laptop Farm Scheme Worked

At the center of the North Korea IT worker scheme were so-called “laptop farms” operated by the defendants in the United States. These setups were designed to make it appear that remote IT workers were physically located in the U.S. Using stolen identities of more than 80 Americans, the group secured remote IT roles across multiple organizations, including several Fortune 500 companies. The defendants and their associates hosted company-issued laptops at U.S. locations, enabling overseas workers to access them remotely. To facilitate this, they used hardware tools such as keyboard-video-mouse switches, allowing remote control of the devices from abroad. This setup helped bypass location checks and security controls commonly used by employers.

Use of Shell Companies and Financial Networks

The defendants also created shell companies, including Hopana Tech LLC and Independent Lab LLC, to support the North Korea IT worker scheme. These entities had no real operations but were used to present the overseas workers as legitimate U.S.-based employees. Payments from victim companies were routed through financial accounts linked to these shell companies. Authorities said millions of dollars were funneled through these accounts, with a significant portion transferred to overseas co-conspirators. In return, the facilitators in the U.S. received nearly $700,000 for their involvement.

Access to Sensitive Data and Security Risks

The North Korea IT worker scheme raised serious concerns about data security and national security. Investigators found that some of the fraudulently hired workers gained access to sensitive corporate information, including source code and restricted technical data. In one instance, an overseas co-conspirator accessed data controlled under International Traffic in Arms Regulations from a U.S.-based defense contractor. The data included sensitive information related to advanced technologies. Officials warned that such access could expose critical systems and intellectual property to foreign adversaries.

Ongoing Investigation and Wanted Suspects

Authorities continue to investigate the broader North Korea IT worker scheme, with several individuals still at large. The Federal Bureau of Investigation has identified multiple suspects believed to be involved in the operation. The U.S. Department of State has announced a reward of up to $5 million for information that helps disrupt financial networks supporting such activities. Law enforcement agencies have already taken action to dismantle parts of the operation. This includes the seizure of web domains and financial accounts linked to the scheme, along with the recovery of more than 70 laptops and remote access devices during coordinated searches. The North Korea IT worker scheme is part of a broader effort by DPRK-linked actors to generate revenue through cyber-enabled operations. Authorities say these schemes often rely on stolen identities, fake online profiles, and third-party facilitators to gain access to company systems. Public advisories from U.S. agencies have previously warned that such workers can earn significant sums, sometimes up to $300,000 annually, contributing to large-scale funding operations tied to North Korea’s strategic programs.

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A major stolen credit card data trafficking case has drawn international attention after a Chilean national was extradited to the United States for allegedly selling tens of thousands of compromised payment card details through online channels. According to the U.S. Department of Justice, Alex Rodrigo Valenzuela Monje, also known as “VAL4K,” was extradited from Chile to the United States on February 25, 2026, and arraigned in federal court in Salt Lake City. The 24-year-old faces charges tied to stolen credit card data trafficking and unlawful transfer of identification information to facilitate criminal activity. The indictment alleges that between May 2021 and August 2023, Valenzuela Monje operated an illegal online card shop that distributed unauthorized access devices—commonly referred to in cybercrime circles as “dumps”—through Telegram channels.

Telegram Carding Marketplace Allegedly Distributed Over 26,000 Stolen Cards

Court documents claim that the accused managed Telegram channels named MacacoCC Collective and Novato Carding, offering payment card data linked to thousands of U.S. consumers. Investigators allege that under just one credit card brand alone, the operation trafficked information tied to approximately 26,528 cards. The stolen credit card data trafficking operation reportedly included sensitive data such as account numbers, cardholder names, expiration dates, and CVV codes, details that can enable fraudulent transactions and identity-based financial crimes. Authorities say the use of Telegram reflects a broader trend in carding cybercrime, where threat actors rely on encrypted messaging platforms to evade detection while running scalable digital marketplaces. This model has become increasingly common across dark web ecosystems, allowing cybercriminals to reach global buyers without maintaining traditional web infrastructure.

International Cybercrime Extradition Signals Stronger Enforcement Push

The extradition process began after a sealed indictment was issued by a federal grand jury in 2023. The United States formally requested extradition, which was initially approved by the Chilean Supreme Court in April 2025. Following appeals, Valenzuela Monje was arrested in January 2026 before being transferred to U.S. authorities. The case was investigated by the Federal Bureau of Investigation (FBI) with support from international partners, highlighting the growing coordination behind international cybercrime extradition efforts. “I want to thank our federal partners for their dedication in investigating individuals in foreign countries who use the internet to commit crimes against our citizens,” said U.S. Attorney Melissa Holyoak of the District of Utah. “Individuals may believe they can hide behind foreign borders, but the United States is committed to investigating and prosecuting these cybercrimes targeting Americans.” “This extradition sends a clear message to cybercriminals everywhere that geography will not shield you from accountability,” said Special Agent in Charge Robert Bohls of the Salt Lake City FBI. “Even when operating from abroad, those who exploit technology to victimize American companies and citizens will be identified, located, and brought to justice. Our international partnerships, alongside our work with the Utah Department of Public Safety, remain among the FBI's most powerful tools in targeting and dismantling cyber threats.

Stolen Credit Card Data Trafficking Continues to Scale Through Digital Platforms

The stolen credit card data trafficking case reflects a larger cybersecurity reality: digital financial crime is no longer limited by geography. Messaging platforms, cryptocurrency payments, and automated data distribution tools have significantly lowered the barrier for cybercriminal operations. While law enforcement actions like this extradition demonstrate progress, the persistence of carding marketplaces suggests that enforcement alone may not be enough. Financial institutions, technology platforms, and consumers must all play a role in reducing the value of stolen data through stronger fraud detection and identity verification controls. Valenzuela Monje has pleaded not guilty, and the case will proceed through the U.S. judicial system. As investigations continue, the incident serves as a reminder that stolen credit card data trafficking remains one of the most active—and profitable—forms of cybercrime in today’s digital economy.

Supposedly redacted Jeffrey Epstein files can still reveal exactly who they’re talking about - especially when AI, LinkedIn, and a few biographical breadcrumbs do the heavy lifting. Sloppy redaction leads to explosive claims, and difficult reputational consequences for cybersecurity vendors, and we learn how trust - once cracked - can be almost impossible to fully restore. Elsewhere, the spotlight turns to insider threat in the age of AI, after a senior US cybersecurity official uploads sensitive government material into the public version of ChatGPT. Oops. All this, and much more, in episode 453 of Smashing Security with cybersecurity veteran Graham Cluley and special guest Tricia Howard.

A Ukrainian man indicted in 2012 for conspiring with a prolific hacking group to steal tens of millions of dollars from U.S. businesses was arrested in Italy and is now in custody in the United States, KrebsOnSecurity has learned.

Sources close to the investigation say Yuriy Igorevich Rybtsov, a 41-year-old from the Russia-controlled city of Donetsk, Ukraine, was previously referenced in U.S. federal charging documents only by his online handle “MrICQ.” According to a 13-year-old indictment (PDF) filed by prosecutors in Nebraska, MrICQ was a developer for a cybercrime group known as “Jabber Zeus.”

The Jabber Zeus name is derived from the malware they used — a custom version of the ZeuS banking trojan — that stole banking login credentials and would send the group a Jabber instant message each time a new victim entered a one-time passcode at a financial institution website. The gang targeted mostly small to mid-sized businesses, and they were an early pioneer of so-called “man-in-the-browser” attacks, malware that can silently intercept any data that victims submit in a web-based form.

Once inside a victim company’s accounts, the Jabber Zeus crew would modify the firm’s payroll to add dozens of “money mules,” people recruited through elaborate work-at-home schemes to handle bank transfers. The mules in turn would forward any stolen payroll deposits — minus their commissions — via wire transfers to other mules in Ukraine and the United Kingdom.

The 2012 indictment targeting the Jabber Zeus crew named MrICQ as “John Doe #3,” and said this person handled incoming notifications of newly compromised victims. The Department of Justice (DOJ) said MrICQ also helped the group launder the proceeds of their heists through electronic currency exchange services.

Two sources familiar with the Jabber Zeus investigation said Rybtsov was arrested in Italy, although the exact date and circumstances of his arrest remain unclear. A summary of recent decisions (PDF) published by the Italian Supreme Court states that in April 2025, Rybtsov lost a final appeal to avoid extradition to the United States.

According to the mugshot website lockedup[.]wtf, Rybtsov arrived in Nebraska on October 9, and was being held under an arrest warrant from the U.S. Federal Bureau of Investigation (FBI).

The data breach tracking service Constella Intelligence found breached records from the business profiling site bvdinfo[.]com showing that a 41-year-old Yuriy Igorevich Rybtsov worked in a building at 59 Barnaulska St. in Donetsk. Further searching on this address in Constella finds the same apartment building was shared by a business registered to Vyacheslav “Tank” Penchukov, the leader of the Jabber Zeus crew in Ukraine.

Penchukov was arrested in 2022 while traveling to meet his wife in Switzerland. Last year, a federal court in Nebraska sentenced Penchukov to 18 years in prison and ordered him to pay more than $73 million in restitution.

Lawrence Baldwin is founder of myNetWatchman, a threat intelligence company based in Georgia that began tracking and disrupting the Jabber Zeus gang in 2009. myNetWatchman had secretly gained access to the Jabber chat server used by the Ukrainian hackers, allowing Baldwin to eavesdrop on the daily conversations between MrICQ and other Jabber Zeus members.

Baldwin shared those real-time chat records with multiple state and federal law enforcement agencies, and with this reporter. Between 2010 and 2013, I spent several hours each day alerting small businesses across the country that their payroll accounts were about to be drained by these cybercriminals.

Those notifications, and Baldwin’s tireless efforts, saved countless would-be victims a great deal of money. In most cases, however, we were already too late. Nevertheless, the pilfered Jabber Zeus group chats provided the basis for dozens of stories published here about small businesses fighting their banks in court over six- and seven-figure financial losses.

Baldwin said the Jabber Zeus crew was far ahead of its peers in several respects. For starters, their intercepted chats showed they worked to create a highly customized botnet directly with the author of the original Zeus Trojan — Evgeniy Mikhailovich Bogachev, a Russian man who has long been on the FBI’s “Most Wanted” list. The feds have a standing $3 million reward for information leading to Bogachev’s arrest.

The core innovation of Jabber Zeus was an alert that MrICQ would receive each time a new victim entered a one-time password code into a phishing page mimicking their financial institution. The gang’s internal name for this component was “Leprechaun,” (the video below from myNetWatchman shows it in action). Jabber Zeus would actually re-write the HTML code as displayed in the victim’s browser, allowing them to intercept any passcodes sent by the victim’s bank for multi-factor authentication.

“These guys had compromised such a large number of victims that they were getting buried in a tsunami of stolen banking credentials,” Baldwin told KrebsOnSecurity. “But the whole point of Leprechaun was to isolate the highest-value credentials — the commercial bank accounts with two-factor authentication turned on. They knew these were far juicier targets because they clearly had a lot more money to protect.”

Baldwin said the Jabber Zeus trojan also included a custom “backconnect” component that allowed the hackers to relay their bank account takeovers through the victim’s own infected PC.

“The Jabber Zeus crew were literally connecting to the victim’s bank account from the victim’s IP address, or from the remote control function and by fully emulating the device,” he said. “That trojan was like a hot knife through butter of what everyone thought was state-of-the-art secure online banking at the time.”

Although the Jabber Zeus crew was in direct contact with the Zeus author, the chats intercepted by myNetWatchman show Bogachev frequently ignored the group’s pleas for help. The government says the real leader of the Jabber Zeus crew was Maksim Yakubets, a 38-year Ukrainian man with Russian citizenship who went by the hacker handle “Aqua.”

The Jabber chats intercepted by Baldwin show that Aqua interacted almost daily with MrICQ, Tank and other members of the hacking team, often facilitating the group’s money mule and cashout activities remotely from Russia.

The government says Yakubets/Aqua would later emerge as the leader of an elite cybercrime ring of at least 17 hackers that referred to themselves internally as “Evil Corp.” Members of Evil Corp developed and used the Dridex (a.k.a. Bugat) trojan, which helped them siphon more than $100 million from hundreds of victim companies in the United States and Europe.

This 2019 story about the government’s $5 million bounty for information leading to Yakubets’s arrest includes excerpts of conversations between Aqua, Tank, Bogachev and other Jabber Zeus crew members discussing stories I’d written about their victims. Both Baldwin and I were interviewed at length for a new weekly six-part podcast by the BBC that delves deep into the history of Evil Corp. Episode One focuses on the evolution of Zeus, while the second episode centers on an investigation into the group by former FBI agent Jim Craig.

The world’s largest and most disruptive botnet is now drawing a majority of its firepower from compromised Internet-of-Things (IoT) devices hosted on U.S. Internet providers like AT&T, Comcast and Verizon, new evidence suggests. Experts say the heavy concentration of infected devices at U.S. providers is complicating efforts to limit collateral damage from the botnet’s attacks, which shattered previous records this week with a brief traffic flood that clocked in at nearly 30 trillion bits of data per second.

Since its debut more than a year ago, the Aisuru botnet has steadily outcompeted virtually all other IoT-based botnets in the wild, with recent attacks siphoning Internet bandwidth from an estimated 300,000 compromised hosts worldwide.

The hacked systems that get subsumed into the botnet are mostly consumer-grade routers, security cameras, digital video recorders and other devices operating with insecure and outdated firmware, and/or factory-default settings. Aisuru’s owners are continuously scanning the Internet for these vulnerable devices and enslaving them for use in distributed denial-of-service (DDoS) attacks that can overwhelm targeted servers with crippling amounts of junk traffic.

As Aisuru’s size has mushroomed, so has its punch. In May 2025, KrebsOnSecurity was hit with a near-record 6.35 terabits per second (Tbps) attack from Aisuru, which was then the largest assault that Google’s DDoS protection service Project Shield had ever mitigated. Days later, Aisuru shattered that record with a data blast in excess of 11 Tbps.

By late September, Aisuru was publicly flexing DDoS capabilities topping 22 Tbps. Then on October 6, its operators heaved a whopping 29.6 terabits of junk data packets each second at a targeted host. Hardly anyone noticed because it appears to have been a brief test or demonstration of Aisuru’s capabilities: The traffic flood lasted less only a few seconds and was pointed at an Internet server that was specifically designed to measure large-scale DDoS attacks.

Aisuru’s overlords aren’t just showing off. Their botnet is being blamed for a series of increasingly massive and disruptive attacks. Although recent assaults from Aisuru have targeted mostly ISPs that serve online gaming communities like Minecraft, those digital sieges often result in widespread collateral Internet disruption.

For the past several weeks, ISPs hosting some of the Internet’s top gaming destinations have been hit with a relentless volley of gargantuan attacks that experts say are well beyond the DDoS mitigation capabilities of most organizations connected to the Internet today.

Steven Ferguson is principal security engineer at Global Secure Layer (GSL), an ISP in Brisbane, Australia. GSL hosts TCPShield, which offers free or low-cost DDoS protection to more than 50,000 Minecraft servers worldwide. Ferguson told KrebsOnSecurity that on October 8, TCPShield was walloped with a blitz from Aisuru that flooded its network with more than 15 terabits of junk data per second.

Ferguson said that after the attack subsided, TCPShield was told by its upstream provider OVH that they were no longer welcome as a customer.

“This was causing serious congestion on their Miami external ports for several weeks, shown publicly via their weather map,” he said, explaining that TCPShield is now solely protected by GSL.

Traces from the recent spate of crippling Aisuru attacks on gaming servers can be still seen at the website blockgametracker.gg, which indexes the uptime and downtime of the top Minecraft hosts. In the following example from a series of data deluges on the evening of September 28, we can see an Aisuru botnet campaign briefly knocked TCPShield offline.

Paging through the same uptime graphs for other network operators listed shows almost all of them suffered brief but repeated outages around the same time. Here is the same uptime tracking for Minecraft servers on the network provider Cosmic (AS30456), and it shows multiple large dips that correspond to game server outages caused by Aisuru.

BOTNETS R US

Ferguson said he’s been tracking Aisuru for about three months, and recently he noticed the botnet’s composition shifted heavily toward infected systems at ISPs in the United States. Ferguson shared logs from an attack on October 8 that indexed traffic by the total volume sent through each network provider, and the logs showed that 11 of the top 20 traffic sources were U.S. based ISPs.

AT&T customers were by far the biggest U.S. contributors to that attack, followed by botted systems on Charter Communications, Comcast, T-Mobile and Verizon, Ferguson found. He said the volume of data packets per second coming from infected IoT hosts on these ISPs is often so high that it has started to affect the quality of service that ISPs are able to provide to adjacent (non-botted) customers.

“The impact extends beyond victim networks,” Ferguson said. “For instance we have seen 500 gigabits of traffic via Comcast’s network alone. This amount of egress leaving their network, especially being so US-East concentrated, will result in congestion towards other services or content trying to be reached while an attack is ongoing.”

Roland Dobbins is principal engineer at Netscout. Dobbins said Ferguson is spot on, noting that while most ISPs have effective mitigations in place to handle large incoming DDoS attacks, many are far less prepared to manage the inevitable service degradation caused by large numbers of their customers suddenly using some or all available bandwidth to attack others.

“The outbound and cross-bound DDoS attacks can be just as disruptive as the inbound stuff,” Dobbin said. “We’re now in a situation where ISPs are routinely seeing terabit-per-second plus outbound attacks from their networks that can cause operational problems.”

“The crying need for effective and universal outbound DDoS attack suppression is something that is really being highlighted by these recent attacks,” Dobbins continued. “A lot of network operators are learning that lesson now, and there’s going to be a period ahead where there’s some scrambling and potential disruption going on.”

KrebsOnSecurity sought comment from the ISPs named in Ferguson’s report. Charter Communications pointed to a recent blog post on protecting its network, stating that Charter actively monitors for both inbound and outbound attacks, and that it takes proactive action wherever possible.

“In addition to our own extensive network security, we also aim to reduce the risk of customer connected devices contributing to attacks through our Advanced WiFi solution that includes Security Shield, and we make Security Suite available to our Internet customers,” Charter wrote in an emailed response to questions. “With the ever-growing number of devices connecting to networks, we encourage customers to purchase trusted devices with secure development and manufacturing practices, use anti-virus and security tools on their connected devices, and regularly download security patches.”

A spokesperson for Comcast responded, “Currently our network is not experiencing impacts and we are able to handle the traffic.”

9 YEARS OF MIRAI

Aisuru is built on the bones of malicious code that was leaked in 2016 by the original creators of the Mirai IoT botnet. Like Aisuru, Mirai quickly outcompeted all other DDoS botnets in its heyday, and obliterated previous DDoS attack records with a 620 gigabit-per-second siege that sidelined this website for nearly four days in 2016.

The Mirai botmasters likewise used their crime machine to attack mostly Minecraft servers, but with the goal of forcing Minecraft server owners to purchase a DDoS protection service that they controlled. In addition, they rented out slices of the Mirai botnet to paying customers, some of whom used it to mask the sources of other types of cybercrime, such as click fraud.

Dobbins said Aisuru’s owners also appear to be renting out their botnet as a distributed proxy network that cybercriminal customers anywhere in the world can use to anonymize their malicious traffic and make it appear to be coming from regular residential users in the U.S.

“The people who operate this botnet are also selling (it as) residential proxies,” he said. “And that’s being used to reflect application layer attacks through the proxies on the bots as well.”

The Aisuru botnet harkens back to its predecessor Mirai in another intriguing way. One of its owners is using the Telegram handle “9gigsofram,” which corresponds to the nickname used by the co-owner of a Minecraft server protection service called Proxypipe that was heavily targeted in 2016 by the original Mirai botmasters.

Robert Coelho co-ran Proxypipe back then along with his business partner Erik “9gigsofram” Buckingham, and has spent the past nine years fine-tuning various DDoS mitigation companies that cater to Minecraft server operators and other gaming enthusiasts. Coelho said he has no idea why one of Aisuru’s botmasters chose Buckingham’s nickname, but added that it might say something about how long this person has been involved in the DDoS-for-hire industry.

“The Aisuru attacks on the gaming networks these past seven day have been absolutely huge, and you can see tons of providers going down multiple times a day,” Coelho said.

Coelho said the 15 Tbps attack this week against TCPShield was likely only a portion of the total attack volume hurled by Aisuru at the time, because much of it would have been shoved through networks that simply couldn’t process that volume of traffic all at once. Such outsized attacks, he said, are becoming increasingly difficult and expensive to mitigate.

“It’s definitely at the point now where you need to be spending at least a million dollars a month just to have the network capacity to be able to deal with these attacks,” he said.

RAPID SPREAD

Aisuru has long been rumored to use multiple zero-day vulnerabilities in IoT devices to aid its rapid growth over the past year. XLab, the Chinese security company that was the first to profile Aisuru’s rise in 2024, warned last month that one of the Aisuru botmasters had compromised the firmware distribution website for Totolink, a maker of low-cost routers and other networking gear.

“Multiple sources indicate the group allegedly compromised a router firmware update server in April and distributed malicious scripts to expand the botnet,” XLab wrote on September 15. “The node count is currently reported to be around 300,000.”

Aisuru’s operators received an unexpected boost to their crime machine in August when the U.S. Department Justice charged the alleged proprietor of Rapper Bot, a DDoS-for-hire botnet that competed directly with Aisuru for control over the global pool of vulnerable IoT systems.

Once Rapper Bot was dismantled, Aisuru’s curators moved quickly to commandeer vulnerable IoT devices that were suddenly set adrift by the government’s takedown, Dobbins said.

“Folks were arrested and Rapper Bot control servers were seized and that’s great, but unfortunately the botnet’s attack assets were then pieced out by the remaining botnets,” he said. “The problem is, even if those infected IoT devices are rebooted and cleaned up, they will still get re-compromised by something else generally within minutes of being plugged back in.”

BOTMASTERS AT LARGE

XLab’s September blog post cited multiple unnamed sources saying Aisuru is operated by three cybercriminals: “Snow,” who’s responsible for botnet development; “Tom,” tasked with finding new vulnerabilities; and “Forky,” responsible for botnet sales.

KrebsOnSecurity interviewed Forky in our May 2025 story about the record 6.3 Tbps attack from Aisuru. That story identified Forky as a 21-year-old man from Sao Paulo, Brazil who has been extremely active in the DDoS-for-hire scene since at least 2022. The FBI has seized Forky’s DDoS-for-hire domains several times over the years.

Like the original Mirai botmasters, Forky also operates a DDoS mitigation service called Botshield. Forky declined to discuss the makeup of his ISP’s clientele, or to clarify whether Botshield was more of a hosting provider or a DDoS mitigation firm. However, Forky has posted on Telegram about Botshield successfully mitigating large DDoS attacks launched against other DDoS-for-hire services.

In our previous interview, Forky acknowledged being involved in the development and marketing of Aisuru, but denied participating in attacks launched by the botnet.

Reached for comment earlier this month, Forky continued to maintain his innocence, claiming that he also is still trying to figure out who the current Aisuru botnet operators are in real life (Forky said the same thing in our May interview).

But after a week of promising juicy details, Forky came up empty-handed once again. Suspecting that Forky was merely being coy, I asked him how someone so connected to the DDoS-for-hire world could still be mystified on this point, and suggested that his inability or unwillingness to blame anyone else for Aisuru would not exactly help his case.

At this, Forky verbally bristled at being pressed for more details, and abruptly terminated our interview.

“I’m not here to be threatened with ignorance because you are stressed,” Forky replied. “They’re blaming me for those new attacks. Pretty much the whole world (is) due to your blog.”