Treasury Sanctions 11 in North Korean IT Worker Crypto Scheme Moving Millions

The U.S. Treasury Department has sanctioned 11 individuals and entities tied to a North Korean scheme that used IT workers to launder millions in cryptocurrency. Two Russian nationals, identified by the Office of Foreign Assets Control (OFAC), converted over $5 million in crypto for North Korean networks, with their digital wallets now publicly listed. The sanctions target a network that allegedly generated revenue for Pyongyang’s weapons programs by deploying freelance IT workers who fraudulently obtained remote jobs at Western companies. OFAC’s action freezes any U.S. assets and bars transactions with the designated parties, aiming to disrupt a key funding stream for North Korea’s illicit activities. This move underscores the growing use of cryptocurrency by state-sponsored actors to evade traditional financial controls. As crypto becomes a preferred tool for sanctions evasion, regulators are intensifying efforts to trace and block these flows, signaling tighter scrutiny for exchanges and intermediaries.