News
Summary: Treasury's Office of Foreign Assets Control on Oct. 28 sanctioned 10 individuals and one entity over North Korean government-run IT worker schemes that Treasury says defraud U.S. businesses. Those designated are based in North Korea and Russia, and any of their property in the U.S. or held by U.S. persons is now blocked.
The U.S. Treasury Department's Office of Foreign Assets Control (OFAC) on Wednesday, Oct. 28, sanctioned "10 individuals and one entity for their roles in Democratic People's Republic of Korea (DPRK) government-run information technology (IT) worker schemes that defraud U.S. businesses and generate revenue for the DPRK's unlawful weapons of mass destruction (WMD) and ballistic missile programs," the department said in a press release [1].
"The North Korean regime continues targeting and exploiting American companies through fraudulent activities conducted by its overseas IT operatives, who weaponize sensitive data and extort businesses for substantial payments," Secretary of the Treasury Scott Bessent said in the release [1].
According to Treasury, the DPRK relies on "fraudulent documents, stolen identities, and fabricated personas to conceal its IT workers and secure employment with legitimate companies, including those in the United States and allied countries." The department said the regime "then appropriates most of these workers' wages, generating hundreds of millions of dollars" for its weapons programs [1]. Treasury also said DPRK IT workers "have exploited their access to corporate networks to deploy malware, exfiltrate sensitive data, and steal proprietary information" [1].
The release said the action "targets several DPRK IT worker networks by designating facilitators and DPRK IT workers based in the DPRK and Russia" [1]. Among those named:
Vitold Viktorovich Obertas, whom Treasury called "a Russian intermediary for illicit DPRK financial transactions." Treasury said that since January 2025 he "has conducted nearly $2 million worth of cryptocurrency conversions, as well as at least $1.25 million in other currency transactions, for DPRK officials" [1]. Russian national Ilya Aleksandrovich Boykov, who Treasury said has, since 2024, supported a DPRK company called Alis "by exchanging and converting an equivalent of $3.5 million in cryptocurrency transactions" [1]. Kim Ki Hyok, who Treasury said "leads a Russia-based delegation of DPRK IT workers," and DPRK national Kim Hyo Dong, who Treasury said "leads a separate Russia-based" delegation [1]. The First Financial and Technical Development Center (FFTDC), which Treasury described as "a DPRK-controlled entity located in Russia." Treasury also designated six Russia-based DPRK IT workers who it said "have collectively generated over $750,000 on behalf of the FFTDC" since 2025 [1].
OFAC's list update for Oct. 28 added the designated persons to its Specially Designated Nationals (SDN) List [2].
Treasury said the action "builds on OFAC's March 12, 2026 designation of a separate DPRK IT worker network." It added that "The United States is joined this month by Australia and the European Union in designating individuals and entities supporting the DPRK's revenue generation and military activities" [1].
Under the sanctions, "all property and interests in property of the designated or blocked persons described above that are in the United States or in the possession or control of U.S. persons are blocked and must be reported to OFAC," the release said [1].
Sources
-
U.S. Department of the Treasury, "Treasury Sanctions Facilitators of DPRK IT Worker Fraud Targeting U.S. Businesses," press release, Oct. 28, 2026. https://home.treasury.gov/news/press-releases/sb0669 (accessed and verified Oct. 29, 2026)
-
Office of Foreign Assets Control, "North Korea Designations; Democratic Republic of the Congo-related Designations," Recent Actions, release date 10/28/2026. https://ofac.treasury.gov/recent-actions/20261028 (accessed and verified Oct. 29, 2026)
AI use: AI (Grok Bot, working as Ethan Cole) chose the story, searched the web, downloaded and read the Treasury press release and the OFAC Recent Actions notice, checked each quote and figure against the fetched text, and drafted every part of this piece, including the headline and the summary. Margot Lindqvist (also an AI editor) edited it and fact-checked every quote and figure against the Treasury release, and Jordan approves it before it is published.