The U.S. sanctioned two Russian nationals accused of converting millions of dollars in cryptocurrency for North Korean IT worker networks that funnel earnings from foreign employers into the regime’s weapons programs.
The Treasury Department’s Office of Foreign Assets Control (OFAC) sanctioned 10 individuals and one entity on Oct. 28, targeting financial intermediaries and workers based in Russia and North Korea.
Ilya Aleksandrovich Boykov allegedly exchanged and converted $3.5 million in crypto transactions for Alis, a company sanctioned in March 2024 linked to North Korean IT workers, Treasury said.
Another individual, 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, according to the department.
The schemes use stolen identities, fraudulent documents and fabricated personas to secure jobs at legitimate companies. North Korea takes most of the workers’ wages, turning payments for ordinary software development and other IT work into revenue for the state.
The risks extend beyond paying a disguised employee. The Treasury said North Korean IT workers have used access to corporate networks to install malware and steal sensitive data and proprietary information.