Tennessee Man's 'Laptop Farm' Allegedly Funded North Korean Weapons Program

A Nashville resident has been indicted by the Department of Justice (DOJ) for allegedly operating a “laptop farm” from his home. The operation is believed to have indirectly funded North Korea’s illicit weapons programs by aiding North Korean tech workers in securing remote jobs with large American and British companies.

What Happened: Matthew Isaac Knoot is accused of hosting numerous laptops at his residence. These devices were reportedly used by North Korean IT workers to secure lucrative contract jobs at U.S. companies under stolen identities.

According to a report by Fortune, the DOJ alleges that the salaries earned by these workers were illegally channeled to North Korea to bolster its weapons programs.

Knoot is also charged with laundering the tech workers’ salaries, some reaching up to $300,000 a year, and transferring the funds to accounts linked to North Korean and Chinese nationals.

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The companies involved in the scheme, including a media company in New York City, a U.K. financial institution, a tech company in Portland, and a Virginia media company, have not been named.

Assistant Attorney General Matthew Olsen has urged U.S. businesses to exercise increased vigilance in their hiring processes due to the escalating threat from North Korea.

If convicted, Knoot could face a maximum penalty of 20 years in prison for his role in the scheme, which ran from July 2022 to August 2023.

Why It Matters: The DOJ and the FBI have been probing such laptop farms funded by North Korea for the past three years. These operations are believed to generate hundreds of millions each year for North Korea’s weapons of mass destruction program.

This case underlines the innovative and covert methods employed by North Korea to fund its illicit activities, highlighting the need for companies to strengthen their hiring processes and for authorities to intensify their efforts to curb such practices.

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This content was partially produced with the help of Benzinga Neuro and was reviewed and published by Benzinga editors.