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The Morning Risk Report: He Thought an Employee Stole Crypto. The FBI Says It Was a North Korean Scammer.
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By Max Fillion | Dow Jones Risk Journal
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Good morning. An army of North Korean workers have taken jobs at companies around the world.
Pemba Sherpa, seemed like a great employee. Eager to work, he began as a $35-an-hour coder who sharpened up an app for his boss, Marlon Williams. But a few years later, Williams fired him, thinking he was probably a crook. On Monday, federal authorities accused the man, whose real name is Kim Kwang Jin, of being something even more nefarious.
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Several thousand strong: Over the past five years, North Koreans have built a small army of several thousand illegal workers who have spanned out across the globe and earned hundreds of millions of dollars in paychecks from unsuspecting Western companies while causing further damage through theft and extortion.
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Stolen identity: According to court filings and cyber investigators, Jin was a cybercriminal using a stolen identity. He was part of a group of men who traveled the world looking for ways to make money for their heavily sanctioned government. Their methods of choice were drawing paychecks and stealing from their employers.
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Over $1 million lost: Williams estimates that he paid Sherpa and his associates close to $400,000 in wages over 20 months. The workers also used their positions of trust to steal more than $1 million in cryptocurrency, he said.
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Content from our sponsor: Deloitte
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Nike’s Alana Hoskin: ‘Adaptability Is a Strength, Not a Stressor’
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To lead with agility, Hoskin prioritizes experimentation, fast feedback, and iteration, while framing pivots as key steps toward finding what works for a specific situation and environment. Read More
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Currently, U.S. businesses can avoid export controls by moving products through subsidiaries. Above, a containership departs the Port of Newark in April. Photo: Getty Images
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New U.S. rule might spur surge in entities facing export controls.
Businesses and their advisers have begun preparing for a so-called 50% rule that would balloon the number of businesses that face U.S. export controls, though uncertainty about the timing persists, reports Risk Journal's Katherine Peavy and Richard Vanderford.
The possible rule, not yet formally proposed, is meant to close what critics regard as a loophole in U.S. export controls. If the proposed rule is adopted, the Bureau of Industry and Security, the Department of Commerce’s branch that enforces export controls, would expand a blacklist known as the entity list to include businesses at least 50% owned by a company already on it.
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Sens. Ted Cruz (R., Texas) and Marsha Blackburn (R., Tenn.) are proposing a five-year ban on state laws seeking to regulate artificial intelligence as part of the “big, beautiful bill.” The provision could dictate who sets guardrails for AI moving forward.
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Apple said it will delay offering some planned new features to users in the European Union this year because regulations are making it harder to bring them to market in the region.
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U.K. antitrust officials said they were investigating Boeing’s deal to acquire fuselage maker Spirit AeroSystems, a move that threatens to delay a takeover that Boeing executives believe could improve the safety and quality of manufacturing.
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A former executive for a subsidiary of aviation company AAR has been sentenced to three years of probation for his role in a scheme to bribe Nepali officials in exchange for contracts to sell two planes to the country’s national airline.
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President Trump and Paramount Global have moved ahead on negotiations to settle a lawsuit involving a “60 Minutes” interview with former Vice President Kamala Harris.
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In a bid to appease President Trump and restart trade talks, Canada is rescinding a three-percent tax on companies providing digital services. Photo: Graham Hughes/Bloomberg News
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Canada rescinds digital-services tax to salvage trade discussions with U.S.
Canada said it would rescind a digital-services tax in a bid to salvage trade discussions with the U.S. after President Trump paused talks on Friday.
Canada’s finance department was set to collect billions of dollars from U.S. tech companies starting Monday, when payments were due under a digital-services tax that Canada’s Liberal government implemented last year, under former Prime Minister Justin Trudeau.
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Trump administration weighs eliminating funds for hospitals offering gender care to minors.
The Trump administration is weighing cutting off funds to hospitals that it says provide gender-related treatments for children and teenagers, a move that would sharply escalate officials’ scrutiny of such programs.
The potential for increased federal scrutiny on gender-related healthcare comes after a 30-day deadline passed Saturday for nine children’s hospitals to respond to letters from Mehmet Oz, the Centers for Medicare and Medicaid Services administrator and celebrity physician known as Dr. Oz. The former heart surgeon and television host demanded data related to sex-reassignment surgeries, hormone therapy and puberty blockers.
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The Trump administration isn’t giving up its legal fight to enforce punishing sanctions against law firms following a string of resounding defeats in court.
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Trump wants to expand nuclear power. It won’t be easy. Developers need to prove they can deliver on time and on budget to kick-start interest.
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Immigrants revived Rust Belt cities. Now they’re in hiding. In one Cincinnati neighborhood, "They think any truck with tinted windows is ICE."
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The Trump administration informed Harvard University that its investigation found it had violated federal civil-rights law over its treatment of Jewish and Israeli students, putting the federal funding of the nation’s oldest university further at risk.
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Senate Republicans charged forward Monday with a marathon session to pass President Trump’s “big, beautiful bill,” as the party races to get the legislation to the president’s desk by its self-imposed July 4 deadline.
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