US Treasury Sanctions 10 Individuals and One Entity to Crack Down on North Korean IT Worker Fraud Network

On October 28 that, according to the U.S. Department of the Treasury, the Office of Foreign Assets Control (OFAC) announced on October 28 sanctions against 10 individuals and one entity for their involvement in government-sponsored North Korean IT worker fraud. These activities defraud U.S. companies and generate revenue for North Korea's weapons of mass destruction and ballistic missile programs.

The sanctioned targets are primarily located in North Korea and Russia. Russian intermediary Vitold Obertas has processed nearly $2 million in cryptocurrency exchanges for North Korean officials since January 2025, along with at least $1.25 million in transactions involving other currencies. Russian citizen Ilya Boykov has exchanged and converted approximately $3.5 million in cryptocurrency for the company Alis since 2024. North Korean national Kim Ki Hyok has transferred nearly $500,000 in cryptocurrency since 2024, while Kim Hyo Dong assisted in transferring over $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 personnel (Kim Kyong Ju, Ri Thae Chol, So Hyon Jin, Han Yu Song, Kim Sung Gwan, Hyon Se Il) have cumulatively generated over $750,000 for it since 2025. These individuals use artificial intelligence tools and conduct money laundering through complex cryptocurrency transfers.