US Justice Department seizes infrastructure tied to North Korea’s $400M FaceStealer crypto scheme

The U.S. Justice Department has seized infrastructure linked to North Korea’s “FaceStealer” crypto scheme, which funneled roughly $400 million in stolen digital assets. The operation targeted the backend systems used by state-sponsored actors to launder funds and move tokens across chains. The seizure underscores the persistent threat of state-backed cybercrime to crypto markets and the growing role of law enforcement in tracing on-chain flows. Investigators tied the scheme to fake identity and recruitment tactics used to infiltrate crypto projects and drain wallets. Market participants will watch whether recovered funds are returned to victims and whether exchanges tighten counterparty checks on North Korea-linked addresses.