Authorities have dismantled a “laptop farm” in Nashville, Tennessee, allegedly used to support the Democratic People’s Republic of Korea’s (DPRK) weapons program.

Matthew Isaac Knoot, 38, has been charged with multiple offenses, including conspiracy to cause damage to protected computers and money laundering.

The Scheme Unveiled

According to court documents, Knoot participated in a complex scheme to secure remote IT jobs for North Korean operatives posing as U.S. citizens.

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Using the stolen identity of a U.S. citizen, Knoot facilitated the employment of these operatives with American and British companies.

The companies, believing they were hiring legitimate U.S.-based workers, unwittingly funneled hundreds of thousands of dollars into the DPRK’s weapons program.

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Knoot’s role involved hosting company laptops at his residences, installing unauthorized software to enable remote access, and laundering payments through accounts linked to North Korean and Chinese actors.

The scheme reportedly caused over $500,000 in damages to victim companies, which were forced to audit and remediate their compromised systems.

National Security Implications

U.S. Attorney Henry C. Leventis emphasized the national security implications of this case, stating, “North Korea has dispatched thousands of highly skilled IT workers around the world to dupe unwitting businesses and evade international sanctions.”

Assistant Attorney General Matthew G. Olsen warned U.S. businesses of the growing threat from the DPRK and urged vigilance in hiring processes.

The FBI’s Cyber Division, led by Assistant Director Bryan Vorndran, is prioritizing efforts to disrupt the flow of illicit funds to North Korea.

The dismantling of Knoot’s laptop farm is part of the broader “DPRK RevGen: Domestic Enabler Initiative,” launched to target similar operations across the United States.

Knoot faces a maximum penalty of 20 years in prison if convicted. Assistant U.S. Attorney Josh Kurtzman and Trial Attorney Greg Nicosia are prosecuting the case.

The FBI’s Memphis Field Office and Nashville Resident Agency lead the investigation. This case highlights the ongoing threat posed by North Korean IT worker schemes.

The FBI and the Departments of State and Treasury continue to issue advisories to alert businesses and the public about the risks associated with hiring remote IT workers.

As the investigation unfolds, authorities remain committed to safeguarding national security and protecting businesses from similar threats.

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