US Treasury Sanctions 10 People and One Entity Over North Korean IT-Worker and Crypto Conversion Network

The US Treasury’s Office of Foreign Assets Control (OFAC) sanctioned ten individuals and one entity on October 28 for helping North Korea earn and move money through IT-worker schemes and cryptocurrency conversions. Treasury Secretary Scott Bessent said the North Korean regime “continues targeting and exploiting American companies.”

The entity is the First Financial and Technical Development Center (FFTDC), a North Korea-controlled company in Russia that uses North Korean IT workers. Six of those workers are among the people sanctioned, and Treasury says they generated more than $750,000 for FFTDC since 2025.

The rest are facilitators. Russian national Ilya Boykov exchanged and converted cryptocurrency worth the equivalent of $3.5 million for the Alis company since 2024. Vitold Obertas handled nearly $2 million in crypto conversions for North Korean officials since January 2025, plus at least $1.25 million in other currency transactions. Kim Ki Hyok, who leads a Russia-based IT-worker delegation for Alis, moved nearly $500,000 in crypto, and Kim Hyo Dong facilitated transfers of more than $100,000.

In total, the named crypto conversions and transfers add up to roughly $6 million. The Treasury release does not name wallet addresses, exchanges or specific exchangers, so it is unclear which platforms were used.

For crypto businesses, the action is a reminder that OFAC looks beyond hackers to the intermediaries who convert funds into cash. Exchanges and OTC desks that deal with Russia-linked counterparties face added screening pressure.

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Sources:

• U.S. Treasury: Treasury Sanctions Facilitators of DPRK IT Worker Fraud Targeting U.S. Businesses