U.S. Treasury Sanctions 11 Over North Korean IT Crypto Scheme

Treasury sanctions — The U.S. Department of the Treasury has sanctioned 11 individuals for their alleged roles in a North Korean information technology worker scheme that moved millions of dollars through cryptocurrency.

The Office of Foreign Assets Control (OFAC) announced the sanctions on October 2, 2026, targeting a network that used fake identities to secure remote IT work for North Korean operatives. The proceeds were allegedly funneled back to support the regime’s weapons programs.

Among those designated are two Russian nationals, Aleksey Timofeyevich Karelin and Mikhail Vladimirovich Klyuchnikov, accused of converting over $5 million in cryptocurrency for the networks. OFAC published a list of cryptocurrency wallet addresses associated with the individuals.

The action underscores ongoing U.S. efforts to disrupt North Korea’s use of digital assets to evade sanctions and fund its activities. All property of the sanctioned individuals within U.S. jurisdiction is now blocked, and Americans are generally prohibited from dealing with them.