It sounds like the plot of an action-thriller, but for one Atlanta tech entrepreneur, an elaborate cryptocurrency theft involving North Korean assets became his reality.
“It felt like I was in a movie,” Marlon Williams told Channel 2 News (WSB-TV). “That’s where we see these things, right?”
Rather than a phishing scam with criminals pretending to be a bank or government agency and requiring payment in cryptocurrency to ‘solve’ an ‘urgent’ issue, this was a long con orchestrated over two years.
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Williams thought he had hired remote IT workers for his Atlanta-based blockchain research and development company, Starter Labs. Instead, the ‘workers’ were North Korean nationals using stolen identities, according to the FBI.
After gaining his trust, they were able to infiltrate the business, eventually making off with just over $1 million in cryptocurrency.
The unfolding of a long con
Four men — Kim Kwang Jin, Kang Tae Bok, Jong Pong Ju and Chang Nam Il — have been indicted on charges of wire fraud and money laundering, according to a now unsealed federal criminal indictment.
This is part of a larger investigation by the FBI and U.S. Department of Justice (DOJ) into North Korea’s so-called remote IT worker program in which skilled North Korean agents infiltrate American companies using a mix of stolen and fake identities.
Using the stolen identities of at least 80 Americans, North Korean agents have been able to find remote work at more than 100 American companies and then steal and launder virtual currency, according to the DOJ.
This money is used to generate revenue for the Democratic People’s Republic of Korea (DPRK), including its weapons program.
Williams was one of those targets. He hired one of the men — who reached out through the Telegram app via a fake identity — to work on a project. Williams was impressed with his work, telling Channel 2 News he was “super-duper talented.”
So Williams hired him for more projects, eventually promoting him to the role of chief technology officer and allowing him to hire additional staff.
The con took place over about two years during which time he gained Williams’ trust.
“He had the power to create malicious code that he installed and that allowed him to withdraw the funds completely,” Williams said.
“The threat posed by DPRK operatives is both real and immediate. Thousands of North Korean cyber operatives have been trained and deployed by the regime to blend into the global digital workforce and systematically target U.S. companies,” U.S. Attorney for the District of Massachusetts Leah B. Foley said in a statement.
The investigation into North Korean criminal activity has so far resulted in an arrest, two indictments, searches of 29 “laptop farms” across 16 states and “the seizure of 29 financial accounts used to launder illicit funds and 21 fraudulent websites,” according to the DOJ.
The four North Koreans are now wanted by the FBI, but they’re not in the U.S. They were allegedly working out of the United Arab Emirates with North Korean travel documents. As for their victims? It’s incredibly difficult to recover virtual currency and there’s usually no insurance for lost or stolen cryptocurrencies.
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How to protect yourself from crypto risks
When it comes to cryptocurrency such as Bitcoin and Ethereum, industry regulations are still being developed. Since crypto doesn’t require an intermediary (like a bank), it can also be used by criminals to hide their activities.
While we could see the passage of the GENIUS Act in the second half of 2025 — designed to regulate the digital currency industry — some critics say it will make the financial system less stable.
As an asset class, it’s considered to be volatile since its value is often based on market sentiment. For investors, that means it can offer big rewards, but it can also result in big losses. Many financial advisors consider it a ‘discretionary’ investment — meaning don’t invest what you can’t afford to lose.
Cryptocurrencies aren’t like stocks — or even cold, hard cash, for that matter. The money in your bank account is regulated and insured, but there’s no enforceable regulations or insurance for lost or stolen cryptocurrencies.
“Cryptocurrency held in accounts is not insured by a government like U.S. dollars deposited into an FDIC insured bank account. If something happens to your account or cryptocurrency funds — for example, the company that provides storage for your wallet goes out of business or is hacked — the government has no obligation to step in and help get your money back,” warns the Federal Trade Commission.
For individuals, staying safe means keeping your wallet keys private. Ignore cold calls about crypto investment opportunities and any ‘too good to be true’ offers. If you’re experiencing high-pressure tactics, keep in mind that fraudsters often use a sense of urgency as part of their scam.
For businesses, FBI Atlanta suggests using additional layers of scrutiny in the hiring process for remote IT workers.
Specifically, the FBI recommends using identity-verification processes “during interviewing, onboarding and throughout the employment of any remote worker,” as well as cross-checking HR systems for other applicants with the same resume content. In addition, “complete as much of the hiring and onboarding process as possible in person.”
That’s something Williams is considering.
“Going back to the fundamentals of business, meeting you face-to-face and looking in your eye, shaking your hand, that really matters,” he told Channel 2 News, “even in these new industries that are developing.”
If you suspect you’re the victim of a similar scam, report the activity to the FBI’s Internet Crime Complaint Center.
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This article provides information only and should not be construed as advice. It is provided without warranty of any kind.
