US Sanctions Crypto Facilitators Linked to North Korean IT Worker Schemes

The U.S. Treasury sanctioned 10 people and one entity on Oct. 28 over North Korean IT worker schemes, including a Russian national it says converted $3.5 million in cryptocurrency transactions for an already-sanctioned company.

In its announcement, Treasury named that intermediary as Ilya Aleksandrovich Boykov. Since 2024, Boykov has exchanged and converted the equivalent of $3.5 million in cryptocurrency transactions for Limited Liability Company Alis, while also monitoring cryptocurrency transactions and providing logistical support, Treasury said.

The Office of Foreign Assets Control's SDN list update identifies eight distinct cryptocurrency addresses across the entries for Boykov, fellow Russian intermediary Vitold Viktorovich Obertas and North Korean IT worker manager Kim Ki Hyok. Three addresses are labeled ETH and five TRX, corresponding to Ethereum and Tron. One Ethereum address appears under both Boykov and Obertas.

The designations block the listed parties' property in the United States or in U.S. persons' possession or control, and generally prohibit U.S. persons from transacting with them unless authorized or exempt. OFAC's digital-currency guidance says sanctions obligations apply equally to crypto and fiat transactions, and calls for risk-based compliance programs that generally include sanctions-list screening. OFAC cautions that its address listings are unlikely to be exhaustive.

Revenue Networks in Russia

Treasury says North Korea's overseas IT workers use stolen identities, fraudulent documents and fabricated personas to obtain jobs at legitimate businesses. The government appropriates most of their wages to finance its weapons programs, according to the department.

Alis, the company Boykov allegedly supported, was sanctioned in March 2024. Treasury identified it then as a Vladivostok-based subsidiary of the sanctioned Chinyong Information Technology Cooperation Company, which manages North Korean IT worker delegations in Russia and Laos.

The latest action also targets Obertas, who Treasury says conducted nearly $2 million in cryptocurrency conversions for North Korean officials since January 2025. Kim Ki Hyok leads an Alis worker delegation in Russia, while another designee, Kim Hyo Dong, leads a separate Chinyong-subordinate delegation there, Treasury said.

The newly designated entity is the First Financial and Technical Development Center, which Treasury describes as a North Korean-controlled organization in Russia. OFAC also listed six North Korean workers linked to it: Kim Kyong Ju, Ri Thae Chol, So Hyong Jin, Han Yu Song, Kim Sung Gwan and Hyon Se Il. Treasury says the six collectively generated more than $750,000 for the center since 2025.