OFAC sanctions target Russian cryptocurrency intermediaries
The U.S. Department of the Treasury added 10 people and one North Korean entity linked to IT schemes and cryptocurrency transfers to its sanctions list.
OFAC sanctions expand U.S. measures against a network that, according to the Department of the Treasury, assisted North Korean IT workers and financial operations, including cryptocurrency conversions. On October 28, 2026, the Office of Foreign Assets Control (OFAC) added 10 individuals and one entity to its sanctions list.
The designated individuals include Russian nationals Vitold Viktorovich Obertas and Ilya Aleksandrovich Boykov. The sanctions also target the North Korean entity First Financial and Technical Development Center (FFTDC), which operates in Russia.
OFAC sanctions and reported cryptocurrency transactions
OFAC says Obertas carried out cryptocurrency conversions worth nearly $2 million for North Korean officials beginning in January 2025. He also allegedly processed at least $1.25 million in additional currency transactions.
According to the U.S. agency, Boykov carried out cryptocurrency conversions equivalent to $3.5 million for the company Alis beginning in 2024.
The Department of the Treasury links these activities to North Korean IT worker schemes. OFAC says FFTDC and its workers generated millions of dollars for North Korea; independent verification of the total amount was not documented in the available sources.
What inclusion on the sanctions list means
The measure blocks the property of designated persons and entities that is located in U.S. jurisdiction or under the control of U.S. persons. U.S. persons are generally prohibited from doing business with them.
For cryptocurrency exchanges, OTC traders and other financial institutions, this means they need to review potential exposure to designated individuals, entities and related cryptocurrency wallets. OFAC also described the move as a further expansion of measures against financial intermediaries for North Korean IT workers.
Risks when hiring remote workers
According to OFAC, the case links the use of false identities in recruiting remote IT workers with sanctions and financial risks. The agency warns that workers may steal data, deploy malware or extort employers after gaining access to corporate networks.
Claims involving money laundering, fraud against companies and the use of funds for North Korean weapons programs are findings and allegations by the U.S. Department of the Treasury as part of the sanctions measure. The available sources do not cite a separate court ruling establishing the guilt of the designated individuals.
What to watch next
- whether OFAC, the FBI or the U.S. Department of Justice publish criminal charges, asset seizures or information about specific cryptocurrency wallets,
- the responses of cryptocurrency exchanges and blockchain analytics providers to the new designations,
- potential coordinated sanctions by U.S. allies against North Korean IT worker networks.
Sources
- U.S. Department of the Treasury / OFAC – Primarily confirms the date of the measure, the number of designated individuals and entities, the names, the reported cryptocurrency conversion amounts and the legal consequences of the sanctions.
- CBS News – Independently describes the scope of the measure and the connection between the IT worker scheme, Russia and risks to U.S. companies.
- The Record – Corroborates that the measure targeted Russian financial intermediaries and FFTDC along with six workers.
Verified and updated: October 29, 2026 15:21
