The U.S. Treasury Department’s Office of Foreign Assets Control (OFAC) has imposed sanctions on a Russian individual and a Chinese company for their involvement in schemes that enabled North Korean IT workers to operate fraudulently.
Over recent years, hundreds of American businesses were reportedly misled into hiring North Korean nationals who used stolen or fake identities to secure IT jobs. The income generated through these deceptive practices was funneled back to the North Korean government.
According to the Treasury, these workers used forged documents, stolen personal data, and artificial intelligence tools to conceal their identities. They were supported by networks within the U.S. and abroad that helped mask their locations. The operation is believed to have generated hundreds of millions of dollars.
In some instances, these workers installed malware on company systems to extract sensitive information. Others resorted to extortion.
OFAC has named Vitaliy Sergeyevich Andreyev, a Russian citizen, for facilitating payments to Chinyong Information Technology Cooperation Company, a Chinese firm already under U.S. sanctions. Andreyev collaborated with Kim Ung Sun, a North Korean official based in Russia, to convert cryptocurrency into cash, transferring around $600,000.
OFAC also sanctioned Shenyang Geumpungri Network Technology Co., Ltd, a Chinese front company linked to Chinyong. Since 2021, this firm’s North Korean IT workforce reportedly generated over $1 million in revenue for Chinyong and Korea Sinjin Trading Corporation, which operates under the North Korean government.
As a result of these sanctions, all U.S.-based assets and interests belonging to the designated entities are frozen. U.S. individuals and organizations are barred from conducting any transactions with them.
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