The U.S. Treasury sanctioned 10 individuals and one entity over North Korean IT worker schemes. Two Russian nationals allegedly converted millions of dollars in crypto for the networks, and their sanctions listings include Ethereum and Tron addresses.
The U.S. Treasury Department sanctioned 10 individuals and one entity for their roles in North Korean IT worker schemes that defraud U.S. businesses and generate revenue for the country's weapons programs. The department announced the action on Wednesday.
According to Treasury, North Korea uses fake documents, stolen identities and invented personas to place IT workers at legitimate companies, then takes most of their wages. Treasury says the networks have used sophisticated cryptocurrency transactions, money laundering and artificial intelligence tools to move millions of dollars to the regime.
Russian nationals converted crypto for North Korean networks
Two Russian nationals are among those sanctioned. Treasury said Vitold Obertas, a Russian intermediary for North Korean financial transactions, carried out nearly $2 million in crypto conversions since January 2025 for North Korean officials.
Ilya Boykov, meanwhile, exchanged and converted the equivalent of $3.5 million in crypto since 2024 for Limited Liability Company Alis, a North Korean IT worker company sanctioned in 2024, according to Treasury.
The sanctions listings include two Ethereum and two Tron addresses for Boykov, and one Ethereum and three Tron addresses for Obertas. One Ethereum address appears on both men's entries.
A Vladivostok entity and two delegation leaders
Treasury also sanctioned the First Financial and Technical Development Center, a North Korean-controlled entity based in Vladivostok, Russia. Treasury said the center deploys highly trained IT workers who use AI tools and complex cryptocurrency transfers to generate revenue, and that six Russia-based North Korean IT workers have generated more than $750,000 for it since 2025.
Two North Korean nationals who lead Russia-based IT worker delegations were also sanctioned. One of them, Kim Ki Hyok, has transferred nearly $500,000 in crypto for his delegation since 2024, Treasury said.
The action builds on sanctions against a separate North Korean IT worker network in March, and Australia and the European Union have made their own designations this month, according to Treasury.
Source: Decrypt
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