U.S. sanctions 11 over North Korean IT-worker schemes, naming two Russians who converted millions in crypto

Published Thu, 29 Oct 2026 11:32:51 UTC · Updated Thu, 29 Oct 2026 13:20:00 UTC · Edited by Bizzle · AI-assisted

⚪NeutralThe sanctions target specific launderers and wallets tied to North Korea rather than any network or token, so there is no clear effect on a particular coin.News sentiment, not financial advice. It reflects the likely impact of this news, not a price prediction.

Summary

The U.S. Treasury's Office of Foreign Assets Control sanctioned 10 individuals and one entity for their roles in North Korean government-run IT worker schemes that it says fund the country's weapons programs, Decrypt, CoinDesk and Cointelegraph reported.

Two Russian nationals are among those named: Treasury said Ilya Boykov converted about $3.5 million in crypto since 2024 for Alis, a North Korean IT worker company sanctioned in 2024, and Vitold Obertas carried out nearly $2 million in crypto conversions for North Korean officials since January 2025, according to Decrypt and Cointelegraph.

Decrypt said the listings include Ethereum and Tron addresses for both men, with one Ethereum address appearing on both entries.

Chainalysis published a report tracing how a wallet linked to a North Korean IT worker received regular stablecoin payments, converted them to ETH and moved them through consolidation addresses to Boykov, who sent the funds to Russian exchange Garantex to cash out, Cointelegraph reported.

Key facts

Treasury also sanctioned the First Financial and Technical Development Center, a North Korean-controlled entity in Vladivostok, Russia; six Russia-based North Korean IT workers have generated more than $750,000 for it since 2025, Decrypt reported. (Decrypt)
Obertas also handled at least $1.25 million in other currency transactions for North Korean officials, according to Treasury as cited by Decrypt. (Decrypt)
Kim Ki Hyok, one of two sanctioned North Korean leaders of Russia-based IT worker delegations, transferred nearly $500,000 in crypto for his delegation since 2024, Treasury said, per Decrypt. (Decrypt)
Treasury Secretary Scott Bessent said the regime's overseas IT operatives "weaponize sensitive data and extort businesses for substantial payments," Decrypt reported. (Decrypt)
The action builds on sanctions against a separate network in March, and Australia and the EU made their own designations this month, according to Treasury as cited by Decrypt. (Decrypt)
CoinDesk reported that Boykov and Obertas allegedly converted about $3.5 million and nearly $2 million in crypto, respectively, for North Korea. (CoinDesk)