North Korea sanctions target IT worker scheme funding weapons programs

The Trump administration imposed new sanctions Wednesday targeting a North Korean government-run scheme that the Treasury Department says uses fraudulent identities to place IT workers inside legitimate U.S. companies and funnel their earnings toward Pyongyang’s weapons of mass destruction and ballistic missile programs.

Ten individuals and one entity accused of helping operate or finance the schemes were sanctioned by the Treasury Department’s Office of Foreign Assets Control (OFAC).

According to Treasury, the workers allegedly used stolen identities, fraudulent documents and fake personas to obtain legitimate technology jobs in the U.S. and allied countries.

“The North Korean regime continues targeting and exploiting American companies through fraudulent activities conducted by its overseas IT operatives, who weaponize sensitive data and extort businesses for substantial payments,” Treasury Secretary Scott Bessent said in a statement.

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Treasury Secretary Scott Bessent announced sanctions targeting individuals and an entity accused of facilitating a North Korean IT worker fraud scheme involving American businesses. (Chip Somodevilla/Getty Images / Getty Images)

“Under President Trump’s leadership, Treasury will continue to use all available tools to protect U.S. businesses from these malicious activities and hold those responsible accountable,” he continued.

According to Treasury, the scheme involved North Korean workers concealing their identities and nationalities to secure jobs with legitimate businesses.

Once employed, the regime allegedly collected most of their wages, generating hundreds of millions of dollars that Treasury says helped finance North Korea’s weapons programs.

The new sanctions target individuals and an entity accused of sustaining the schemes on behalf of the North Korean government.

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The Treasury Department says North Korea has used overseas IT workers operating under false identities to generate revenue for the regime’s weapons programs. (Budrul Chukrut/SOPA Images/LightRocket via Getty Images / Getty Images)

Treasury also said North Korean IT workers deployed malware, stole sensitive data and proprietary information and extorted companies, posing risks to businesses worldwide.

The networks have used cryptocurrency, sophisticated money-laundering techniques and artificial intelligence tools to generate and transfer funds for the North Korean government, according to Treasury.

Among the sanctioned individuals is Russian intermediary Vitold Viktorovich Obertas, who allegedly handled nearly $2 million in cryptocurrency conversions and at…