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U.S. sanctions North Koreans and Russians over IT worker fraud
The Treasury Department on Wednesday designated 10 people and a Russia-based entity it said help North Korea place fake IT workers at companies and move their wages, CBS News and The Record reported.
The U.S. Treasury Department on Wednesday sanctioned 10 North Koreans and Russians it said power a North Korean IT worker fraud operation that uses stolen identities, fake résumés and impersonation to get jobs at legitimate companies1.
CBS News reported that wages from those jobs, in the hundreds of millions of dollars, are used to fund North Korea’s weapons of mass destruction and ballistic missile programs1. The Record described the same designations as targeting people accused of laundering those workers’ earnings for Pyongyang2.
According to CBS, North Korean operatives pose as IT professionals, take jobs at U.S. and allied companies, send most of their pay to the government, and can also reach sensitive data, deploy malware or extort employers once inside corporate networks1.
CBS said investigators found key handlers and money movers in Russia1. Among those designated was Russian national Vitold Viktorovich Obertas, who CBS said has processed nearly $2 million in cryptocurrency conversions and at least $1.25 million in other currency transactions for North Korean officials since January 20251.
Treasury’s Office of Foreign Assets Control also sanctioned North Korean national Kim Ki Hyok, who CBS said leads an IT worker delegation in Russia, monitors personnel and financial targets, and has transferred nearly $500,000 in cryptocurrency since 20241.
CBS said OFAC also designated the Russia-based, North Korean-controlled First Financial and Technical Development Center, which it said has generated millions of dollars by placing trained IT workers and moving cryptocurrency, along with six of the center’s operatives1.
U.S.-linked property of the designated people is blocked, and U.S. persons are generally barred from dealing with them, CBS reported1.
Neither CBS News nor The Record carried an on-record response from the designated people, from Moscow or from Pyongyang1,2.
Sources
How it’s being reported
2 sourcesFirst reported by
CBS News
Treasury sanctions North Koreans, Russians over IT worker scheme
The scale of the identity-fraud scheme and named Russian and North Korean facilitators.
CBS said Treasury targeted a North Korean operation using stolen identities and fake IT employees to infiltrate U.S. businesses.
Leaves out Full list of all 10 designated individuals and the entity’s legal authorities.
US sanctions Russians, North Koreans for laundering IT worker earnings
Laundering of IT worker earnings on behalf of North Korea.
The Record said Treasury sanctioned Russian and North Korean nationals for allegedly laundering earnings of illicit IT workers for Pyongyang.
Where they agree
- The U.S. Treasury sanctioned North Korean and Russian nationals over a North Korean IT worker scheme.
- The alleged purpose is moving earnings from fraudulent remote IT jobs to Pyongyang.