Tennessee Man Indicted For Operating A 'Laptop Farm' In North Korean Cybercrime Scheme

A Nashville man has been charged with facilitating a complex scheme to funnel hundreds of thousands of dollars to North Korea’s illicit weapons program.

What Happened: Matthew Isaac Knoot, 38, allegedly helped North Korean IT workers pose as U.S. citizens to secure remote jobs at American and British companies.

According to court documents unsealed today, Knoot is accused of facilitating remote employment for North Korean IT workers at American and British companies.

The workers allegedly posed as U.S. citizens using stolen identities, with Knoot providing crucial support by hosting company laptops at his residences and installing unauthorized software to maintain the deception.

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Prosecutors allege that Knoot operated a “laptop farm” in Nashville between July 2022 and August 2023, enabling North Korean workers based in China to appear as if they were working from the United States.

The scheme reportedly generated over $250,000 for each overseas IT worker involved, with much of the money falsely reported to U.S. tax authorities under stolen identities.

The indictment charges Knoot with multiple offenses, including conspiracy to cause damage to protected computers, money laundering, wire fraud, and aggravated identity theft.

If convicted, he faces up to 20 years in prison.

This case is part of a broader initiative launched by the Department of Justice in March 2024 to combat North Korea’s efforts to circumvent international sanctions through cyber means.

The country has reportedly dispatched thousands of IT workers abroad to generate funds for its weapons programs, including those involving weapons of mass destruction. North Korea has also made headlines for cryptocurrency-related hacks, such as a recent incident that saw $230 million stolen by the country’s infamous Lazarus Group.

What’s Next: These issues are likely to be key topics of discussion at Benzinga’s upcoming Future of Digital Assets event on November 19, where industry experts and regulators will explore the evolving landscape of digital finance and its implications for global security.

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