Washington, Oct 29 (IANS) The United States sanctioned 10 individuals and one entity accused of supporting North Korean information technology worker schemes that defraud American businesses and generate money for Pyongyang’s weapons programmes.
The Treasury Department said on Wednesday (local time) the action targeted workers and facilitators based in North Korea and Russia, including intermediaries accused of converting cryptocurrency and moving funds on behalf of North Korean officials.
The designations by the Office of Foreign Assets Control, or OFAC, block the targets’ property and interests in property in the United States or under the possession or control of US persons.
Treasury said North Korean operatives used false documents, stolen identities and fabricated profiles to obtain jobs with legitimate companies in the United States and allied countries. The North Korean government takes most of their wages, according to the department.
The schemes generate hundreds of millions of dollars for North Korea’s weapons of mass destruction and ballistic missile programmes, Treasury alleged. It said the networks used cryptocurrency transactions, money laundering methods and artificial intelligence tools to earn and transfer funds.
“The North Korean regime continues targeting and exploiting American companies,” Treasury Secretary Scott Bessent said.
Beyond raising money, the workers had used access to corporate networks to introduce malware, extract sensitive data and steal proprietary information, the department alleged. Treasury’s announcement did not identify individual companies affected by Wednesday’s designations.
Among those sanctioned was Russian intermediary Vitold Viktorovich Obertas. Treasury alleged that, since January 2025, he had conducted nearly $2 million in cryptocurrency conversions and at least $1.25 million in other currency transactions for North Korean officials.
His activities included transactions involving Amnokgang Technology Development Company, which OFAC designated in March, the department said.
Another target, Russian national Ilya Aleksandrovich Boykov, was accused of supporting Alis, a previously sanctioned company. Since 2024, he had exchanged and converted the equivalent of $3.5 million in cryptocurrency transactions, monitored transactions and provided logistical assistance, Treasury alleged.
OFAC also designated North Korean nationals Kim Ki Hyok and Kim Hyo Dong, who Treasury said led separate groups of IT workers in Russia.
Kim Ki Hyok monitored Alis workers and ensured they met financial targets, according to the department. It alleged that he had transferred cryptocurrency valued at nearly $500,000 for the group since 2024.
Kim Hyo Dong allegedly provided logistical support, helped evade sanctions and facilitated transfers exceeding $100,000 in financial assets since at least December 2023.
The entity sanctioned was the First Financial and Technical Development Centre, described by Treasury as a North Korean-controlled organisation operating in Russia. The department alleged that its IT workers had generated several million dollars for Pyongyang.
Six North Korean workers associated with the centre were also designated. Treasury identified them as Kim Kyong Ju, Ri Thae Chol, So Hyon Jin, Han Yu Song, Kim Sung Gwan and Hyon Se Il, alleging they had collectively generated more than $750,000 for the organisation since 2025.
Treasury said US persons were generally prohibited from transactions involving blocked property unless authorised or exempt. Entities owned 50 per cent or more, directly or indirectly and individually or collectively, by blocked persons are also covered.
–IANS
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