The US Treasury sanctioned 10 individuals and one entity on October 28 over alleged schemes using North Korean IT workers to fund the country’s weapons programs.
The measures target financial intermediaries, overseas IT managers and workers accused of concealing their North Korean ties through fake identities and cryptocurrency transfers.
Treasury Targets Crypto Transactions
Russian national Vitold Obertas converted nearly $2 million in cryptocurrency for North Korean officials since January 2025 and handled at least $1.25 million in other currency transactions, the Treasury said.
Ilya Boykov converted about $3.5 million in cryptocurrency since 2024 while supporting Alis, a company linked to North Korea’s overseas IT worker network.
The sanctions also target North Korean nationals Kim Ki Hyok and Kim Hyo Dong, who led separate IT worker groups in Russia. Kim Ki Hyok transferred nearly $500,000 in cryptocurrency, while Kim Hyo Dong helped move more than $100,000 in financial assets, according to the agency.
Sanctions Cover IT Worker Operations
The Treasury also designated Russia-based First Financial and Technical Development Center and six North Korean IT workers accused of generating more than $750,000 for the entity since 2025.
The agency warned that these operations can expose companies to data theft, malware and unauthorized access to confidential information.
The sanctions block designated parties’ property under US jurisdiction. US persons generally cannot transact with them without authorization from the Office of Foreign Assets Control. Violations may result in civil or criminal penalties.
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