The U.S. Department of the Treasury’s Office of Foreign Assets Control (OFAC) sanctioned 10 individuals and one entity for their roles in North Korean government information technology (IT) worker schemes that defraud U.S. businesses and finance weapons of mass destruction and ballistic missile programs. The action targets workers, facilitators and financial networks that generate and transfer illicit proceeds. These schemes use stolen identities and fabricated personas to secure employment with legitimate companies, while the North Korean government appropriates most of the workers’ wages. Workers have also exploited access to corporate networks to deploy malware and steal sensitive data and proprietary information. The designated entity, the First Financial and Technical Development Center (FFTDC), operates under North Korean control in Russia and has generated several million dollars through IT workers. Its operations use artificial intelligence tools and complex cryptocurrency transfers to generate and move revenue. Six designated workers in Russia collectively generated more than USD 750,000 for FFTDC since 2025. Among the financial facilitators designated, Russian national Ilya Aleksandrovich Boykov exchanged and converted the equivalent of USD 3.5 million in cryptocurrency for previously sanctioned Limited Liability Company Alis since 2024. Property and interests in property of the designated persons in the United States or under U.S. persons’ possession or control are blocked and must be reported to OFAC. Entities owned directly or indirectly, individually or in aggregate, 50% or more by blocked persons are also blocked. Unless licensed or exempt, transactions involving blocked property by U.S. persons or within or transiting the United States are generally prohibited. Financial institutions and other persons may also face sanctions exposure for certain dealings involving blocked persons.
US Treasury sanctions 10 individuals and one entity over North Korean IT worker fraud networks
The U.S. Treasury’s Office of Foreign Assets Control (OFAC) sanctioned 10 individuals and one entity involved in North Korean information technology worker schemes that defraud businesses and fund weapons programs. The targets include workers and facilitators in Russia using cryptocurrency transfers and money laundering to generate and move proceeds. The measures block property within U.S. jurisdiction, extend to entities owned 50% or more by blocked persons and generally prohibit U.S. transactions involving blocked property unless licensed or exempt.