The U.S. Treasury Department has sanctioned two Russian nationals accused of converting millions of dollars in cryptocurrency for North Korean IT worker networks — part of a sweeping action on October 28 targeting 10 individuals and one entity tied to Pyongyang’s illicit revenue schemes.
US Treasury sanctions crypto laundering (Credits: CoinDesk)
Who Was Sanctioned and What They Allegedly Did
According to Treasury’s Office of Foreign Assets Control (OFAC), Ilya Aleksandrovich Boykov allegedly exchanged and converted the equivalent of $3.5 million in crypto transactions for Alis, a North Korean IT worker company sanctioned in March 2024. The second designee, Vitold Viktorovich Obertas, allegedly conducted nearly $2 million in crypto conversions and at least $1.25 million in other currency transactions for North Korean officials since January 2025.
OFAC also designated the First Financial and Technical Development Center (FFTDC), a North Korean-controlled entity based in Russia, where six workers allegedly generated over $750,000, and listed eight crypto addresses on Ethereum and Tron.
How the North Korean IT Worker Scheme Works
Treasury says the networks use stolen identities, fraudulent documents and fabricated personas to place IT workers at legitimate companies, then take most of their wages — generating hundreds of millions of dollars for the regime’s weapons of mass destruction and ballistic missile programs. Chainalysis found operatives have used generative AI to write resumes and cover letters, AI-generated profile photos, and deepfake video to pass hiring interviews.
“The North Korean regime continues targeting and exploiting American companies through fraudulent activities conducted by its overseas IT operatives, who weaponize sensitive data and extort businesses for substantial payments,” said Treasury Secretary Scott Bessent.
Blockchain analytics firm Chainalysis also traced crypto earned by a North Korean IT worker to Boykov, who allegedly sent it to Garantex, a now-sanctioned Russian exchange, to cash out.
The action blocks the designated parties’ property in the US or under the control of US persons, and follows a separate March designation against another North Korean IT worker network. Australia and the European Union also imposed related sanctions this month.
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Source: CoinDesk — read the full story there.
