US Treasury sanctions North Korean crypto cash-out network
Key points
- The US Treasury sanctioned 10 individuals and one entity linked to North Korean IT worker fraud schemes.
- Russian intermediaries allegedly converted approximately $5.5 million in cryptocurrency for North Korean-linked networks.
- Chainalysis traced cryptocurrency payments through Ethereum wallets to the sanctioned Russian exchange Garantex.
The US Treasury has sanctioned 10 individuals and one entity linked to North Korean IT worker schemes that generate illicit revenue.
The schemes use stolen identities and fraudulent employment to channel overseas IT wages towards North Korea’s weapons programmes.
Chainalysis traced cryptocurrency payments from a North Korean IT worker through Ethereum (ETH) wallets to Russian intermediaries.
Russian national Ilya Aleksandrovich Boykov allegedly converted $3.5 million in cryptocurrency for Alis since 2024.
Chainalysis identified transactions moving through consolidation wallets before reaching Boykov and the sanctioned Russian exchange Garantex.
Russian intermediary Vitold Viktorovich Obertas allegedly converted nearly $2 million in cryptocurrency for North Korean officials since January 2025.
The sanctions also target Russia-based First Financial and Technical Development Center, whose six workers generated over $750,000 since 2025.
The sanctions target financial networks converting fraudulent employment earnings into revenue for North Korea’s weapons programmes.
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