The Office of Foreign Assets Control (OFAC) of the U.S. Department of the Treasury has announced the imposition of sanctions against a network involved in financing weapons of mass destruction and ballistic missile programs for North Korea. The sanctions list includes citizens of North Korea, Russia, and China who, according to the investigation, were involved in a large-scale fraudulent scheme involving IT specialists.
This is reported by Finway
Funding Schemes Through IT and Cryptocurrencies
OFAC notes that the fraudulent network utilized IT workers coordinated by the North Korean government to fund missile programs. Among those investigated is Russian citizen Vitaly Andreev, who assisted in conducting financial transactions for Chinyong Information Technology Cooperation Company. In particular, along with North Korean consular official Kim Un Sun, they conducted operations converting cryptocurrencies into U.S. dollars amounting to approximately $600,000.
Additionally, the Chinese company Shenyang Geumpungri has earned over $1 million for Chinyong and Sinjin since 2021, serving as a cover for delegations of IT workers from North Korea.
“The North Korean regime continues to attack American companies through fraudulent schemes with its foreign IT workers who steal data and demand ransom. The Trump administration is committed to protecting Americans from these schemes and holding those responsible accountable,” said John C. Hurley, Deputy Secretary of the Treasury for Terrorism and Financial Intelligence.
Asset Freezing and Warnings for International Entities
According to OFAC, North Korean IT teams widely use fake documents, forged identities, and fictitious profiles to infiltrate legitimate companies in the U.S. and allied countries. These actions bring the North Korean regime hundreds of millions of dollars each year.
Microsoft’s research confirms that North Korean malicious actors have once again managed to steal billions of dollars in cryptocurrency by disguising themselves as IT specialists, recruiters, and venture investors.
All assets of individuals and companies that have been sanctioned in the U.S. or under the control of American citizens are subject to freezing. American citizens and companies are strictly prohibited from conducting any transactions with these entities.
OFAC emphasizes that violations of sanctions carry both civil and criminal penalties, and foreign banks that cooperate with sanctioned individuals or companies risk facing secondary sanctions.
It is worth noting that recently, OFAC imposed restrictions on the hosting provider Aeza Group from Russia, as well as Russian cryptocurrency exchanges Garantex, Grinex, and their associated counterparties. Amid the growing threat from North Korean hackers, Coinbase CEO Brian Armstrong announced the strengthening of remote work policies, including mandatory in-person orientation for new employees.