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US sanctions North Koreans and Russians accused of planting fake IT workers in firms to fund Pyongyang's weapons programmes

The New Yalu River Bridge crossing between North Korea and China, as the US Treasury sanctions North Koreans and Russians accused of funnelling fraudulent IT workers' wages back to Pyongyang to fund weapons programmes.
The New Yalu River Bridge crossing between North Korea and China, as the US Treasury sanctions North Koreans and Russians accused of funnelling fraudulent IT workers' wages back to Pyongyang to fund weapons programmes.

The US Treasury's Office of Foreign Assets Control has designated 10 individuals and one entity in connection with a North Korean state scheme that embeds fraudulent IT workers inside American and allied companies and funnels their wages back to Pyongyang. Six North Korean operatives linked to the Russia-based First Financial and Technical Development Center used AI tools and crypto laundering to generate over $750,000. Treasury Secretary Scott Bessent warned the regime "weaponizes sensitive data and extorts businesses for substantial payments." Australia and the EU introduced their own North Korea sanctions this month as part of a coordinated response.

Russian national Vitold Viktorovich Obertas processed nearly $2 million in crypto conversions for North Korean officials since January 2026.

Kim Ki Hyok, a North Korean national heading an IT worker delegation in Russia, has moved nearly $500,000 in cryptocurrency since 2024.

The sanctions come as Trump attempts to revive diplomacy with Kim Jong Un, even as Pyongyang has shown little interest in engaging in talks.

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