U.S. Treasury Sanctions 10 Individuals and 1 Entity to Crack Down on North Korean IT Worker Fraud Network

As reported by TechFlow on October 28, the U.S. Department of the Treasury said that the Office of Foreign Assets Control (OFAC) announced on October 28 sanctions on 10 individuals and 1 entity for participating in North Korean government-directed IT worker fraud schemes. These schemes defrauded U.S. businesses and generated revenue for North Korea's weapons of mass destruction and ballistic missile programs.

The sanctioned individuals and entities are primarily located in North Korea and Russia. Russian intermediary Vitold Obertas has completed nearly USD 2 million in cryptocurrency exchanges for North Korean officials since January 2025, in addition to at least USD 1.25 million in transactions in other currencies. Russian citizen Ilya Boykov has exchanged and converted approximately USD 3.5 million worth of cryptocurrency for Alis since 2024. North Korean national Kim Ki Hyok has moved nearly USD 500,000 in cryptocurrency since 2024, while Kim Hyo Dong helped move more than USD 100,000 in assets.

The sanctioned entity, First Financial and Technical Development Center (FFTDC), is located in Russia and is controlled by North Korea. Six of its IT workers (Kim Kyong Ju, Ri Thae Chol, So Hyon Jin, Han Yu Song, Kim Sung Gwan, and Hyon Se Il) have generated more than USD 750,000 in cumulative revenue for it since 2025. These individuals used artificial intelligence tools and laundered funds through complex cryptocurrency transfers.

Source: TechFlow