- OFAC sanctioned 10 individuals and one entity over North Korean IT worker schemes that defraud U.S. businesses and fund the country’s weapons programs.
- Russian nationals Ilya Boykov and Vitold Obertas converted millions of dollars in cryptocurrency for North Korean networks since 2024.
- The sanctions listings include Ethereum and Tron addresses, with one address linked to both Russian men.
- North Korean IT workers use fake identities, AI tools, and complex crypto transfers to generate revenue for the regime, according to Treasury.
The U.S. Treasury Department sanctioned 10 individuals and one entity on Wednesday for their roles in North Korean IT worker schemes that defraud American businesses and generate revenue for weapons programs, the department said.
North Korea uses fake documents and stolen identities to place IT workers at legitimate companies, then collects most of their wages to fund its weapons of mass destruction and ballistic missile programs.
Two Russian nationals are among those sanctioned. Vitold Obertas has carried out nearly $2 million in crypto conversions since January 2025 for North Korean officials, while Ilya Boykov has exchanged $3.5 million in crypto since 2024 for a North Korean IT worker company.
The sanctions listings include Ethereum and Tron addresses for both men, with one Ethereum address appearing on both entries.
Meanwhile, Treasury also sanctioned the First Financial and Technical Development Center, a North Korean-controlled entity based in Vladivostok that deploys IT workers using AI tools and complex cryptocurrency transfers.
“The North Korean regime continues targeting and exploiting American companies through fraudulent activities conducted by its overseas IT operatives,” said Treasury Secretary Scott Bessent.
North Korean IT workers have increasingly targeted crypto projects. Google’s Threat Intelligence Group reported in April 2025 that workers had embedded themselves in crypto projects across multiple countries, including Solana smart contract development.
Treasury announced the action builds on previous sanctions against a separate North Korean IT worker network in March, with Australia and the European Union making their own designations this month.
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