The US Treasury sanctioned two Russians who allegedly converted crypto into cash for North Korean IT workers. The action targets the cash-out stage of a scheme that the UN estimates generates $250 million to $600 million annually for North Korea.
The US Treasury sanctioned 10 individuals and one entity for allegedly helping North Korean IT workers earn money through fraudulent employment at legitimate businesses and convert cryptocurrency into cash. The action targeted financial intermediaries in a network that generates hundreds of millions of dollars annually for Pyongyang.
According to a Chainalysis report, Russian nationals Ilya Aleksandrovich Boykov and Vitold Viktorovich Obertas converted millions of dollars in crypto for front companies that placed North Korean IT workers at businesses under false identities. The workers' earnings ultimately helped fund the North Korean regime and its weapons programs.
Chainalysis traced one payment trail to a developer who contributed code to blockchain and DeFi projects. From late 2022 to early 2023, the worker's wallet received stablecoin payments every two weeks, resembling a regular salary.
The funds were then converted into ETH and sent through consolidation wallets associated with sanctioned entities. From there they reached Boykov, who forwarded the cryptocurrency to Garantex, a Russian exchange that US authorities later sanctioned.
Obertas was also accused of acting as a financial intermediary for North Korean officials. His wallet received funds from another sanctioned organization, Amnokgang Technology Development Company, which was involved in managing overseas IT worker delegations. The Office of Foreign Assets Control (OFAC) said the Russian changed nearly $2 million worth of crypto into fiat currency for North Korean officials.
Source: CryptoPotato
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