U.S. Imposes Sanctions on North Korean IT Workers Funding Weapons Programs

Washington, October 29 (Daily Kiran) : The U.S. Treasury Department announced on Wednesday that it has imposed sanctions on ten individuals and one organization accused of supporting a North Korean IT worker scheme. This network is alleged to have defrauded American companies while funneling money into weapons programs.

The sanctions specifically target workers and intermediaries located in North Korea and Russia. This includes those involved in cryptocurrency exchanges and the transfer of funds on behalf of North Korean officials.

Following the decision by the Office of Foreign Assets Control (OFAC), the assets of these individuals within the U.S. will be blocked, along with any property held by them. According to the Treasury, North Korean agents have used fake documents, stolen identities, and fraudulent profiles to secure employment in legitimate American and allied companies. Most of the salaries earned are reportedly seized by the North Korean government.

The Treasury asserts that these schemes have raised millions of dollars for North Korea’s weapons of mass destruction and ballistic missile programs. The network generates and transfers funds through cryptocurrency transactions, money laundering, and the use of artificial intelligence tools.

Treasury Secretary Scott Beeson stated, “The North Korean regime continues to target and exploit American companies.” Beyond fundraising, these workers have also leveraged access to corporate networks to deploy malware, extract sensitive data, and steal confidential information. However, the names of the affected companies were not disclosed.

Among those sanctioned is Russian intermediary Vitold Viktorovich Obertas. Since January 2025, he has allegedly exchanged nearly $2 million in cryptocurrency for North Korean officials and conducted transactions worth at least $1.25 million. His activities included dealings connected to Amanokgang Technology Development Company, which was sanctioned by OFAC in March.

Another target, Russian citizen Ilya Aleksandrovich Boykov, is accused of supporting the previously sanctioned company “Alice.” Since 2024, he has conducted cryptocurrency transactions equivalent to $3.5 million, monitored transactions, and provided logistical support.

OFAC has also sanctioned North Korean nationals Kim Ki Hyok and Kim Hyo Dong, who lead various groups of IT workers in Russia. Kim Ki Hyok monitored the “Alice” workers to ensure they met financial targets, allegedly transferring about $500,000 in cryptocurrency for the group since 2024. Kim Hyo Dong is accused of providing logistical support, helping to evade sanctions, and facilitating the transfer of over $100,000 in financial assets since December 2023.

The organization sanctioned is the First Financial and Technical Development Center, identified as a North Korea-controlled entity operating in Russia. It is alleged that its IT workers have raised millions of dollars for Pyongyang.

Six North Korean workers associated with this center have also been sanctioned. They are identified as Kim Kyung Joo, Ri Tae Chol, So Hyun Jin, Han Yu Song, Kim Sung Kwan, and Hyun Se Il. They are accused of raising over $750,000 for the organization since 2025.

The Treasury Department has stated that U.S. individuals are prohibited from engaging in transactions related to the blocked assets unless authorized or exempted. Entities owned 50% or more by the blocked individuals will also fall under these sanctions.