US sanctions Russians and North Koreans over IT worker money-laundering scheme

The US Treasury Department has imposed fresh sanctions on Russian and North Korean individuals and companies accused of laundering money earned through North Korea's fraudulent IT worker scheme. According to The Record, the Treasury announced the action on October 28, 2026, in its latest move against a campaign that places North Korean operatives in jobs at Western companies under false identities.

What happened

The Treasury's Office of Foreign Assets Control (OFAC) designated several people and entities, The Record reports. Treasury Secretary Scott Bessent said North Korea's government continues to target and exploit American companies through fraudulent activity by its overseas IT workers. OFAC has sanctioned dozens of North Korean officials and companies over the scheme this year, the report notes.

Who was sanctioned

Two Russian nationals were named as money launderers. According to The Record, Ilya Aleksandrovich Boykov allegedly converted about $3.5 million in cryptocurrency since 2024 and supported a North Korean company called Alis, while Vitold Viktorovich Obertas allegedly laundered at least $3.5 million in cryptocurrency since January 2025 for Amnokgang, a North Korean shell company the US sanctioned in March.

Among the North Koreans, Treasury named Kim Hyo Dong, said to lead a squad of IT workers and to have moved more than $100,000 to evade sanctions, and Kim Ki Hyok, a senior Alis employee described as leading a Russia-based delegation and transferring at least $500,000 to North Korea since 2024. Six IT workers — Kim Kyong Ju, Ri Thae Chol, So Hyon Jin, Han Yu Song, Kim Sung Gwan and Hyon Se Il — together earned at least $750,000 for First Financial and Technical Development Center since 2025, the report says.

Why it matters

The sanctioned entities include Alis, a North Korean company subordinate to other previously sanctioned firms, and the First Financial and Technical Development Center, which Treasury says manages millions earned by North Koreans based in Russia and helps IT workers use artificial intelligence to get hired at US companies while concealing earnings. The Record reports that the scheme has netted Pyongyang millions allegedly used to fund its ballistic missile programs; the article attributes that claim generally rather than to Treasury.

Broader context

The designations are part of a widening international effort. According to The Record, the Justice Department disrupted laptop farms in Texas about two weeks earlier and arrested two people, and Australia sanctioned several North Korean nationals and companies tied to the scheme the previous week. The FBI has also warned that North Korea is targeting lower-income Americans with freelance offers such as hosting company laptops. For employers, the case underscores the need to verify the identity and location of remote technical hires, a recurring weak point the scheme exploits.