U.S. sanctions Russian nationals for laundering millions in crypto for North Korean IT workers
The U.S. Treasury Department has sanctioned 10 individuals and one entity for laundering millions in cryptocurrency to support North Korean IT workers. These workers use fraudulent identities and AI tools to secure remote jobs, with their earnings being funneled back to the North Korean state.
Why it matters
This highlights the intersection of national security, illicit finance, and the misuse of emerging technologies like generative AI to bypass international sanctions.
The Treasury Department’s Office of Foreign Assets Control (OFAC) sanctioned 10 individuals and one entity on Oct. 28, targeting financial intermediaries and workers based in Russia and North Korea .
Ilya Aleksandrovich Boykov allegedly exchanged and converted $3.5 million in crypto transactions for Alis, a company sanctioned in March 2024 linked to North Korean IT workers, Treasury said.
Another individual, Vitold Viktorovich Obertas, allegedly conducted nearly $2 million in crypto conversions and at least $1.25 million in other currency transactions for North Korean officials since January 2025, according to the department.
The schemes use stolen identities, fraudulent documents and fabricated personas to secure jobs at legitimate companies. North Korea takes most of the workers’ wages, turning payments for ordinary software development and other IT work into revenue for the state.
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