US Cracks Down On IT Fraud Tied To Crypto Assets

The US Treasury Department has announced sanctions against a global IT scam network involving individuals and companies from North Korea, Russia, and China. The group is accused of posing as remote IT workers to infiltrate US businesses and steal crypto assets, generating hundreds of millions of dollars for Pyongyang.

According to the Treasury, North Korea has for years deployed “IT operatives” who disguise themselves as remote employees at foreign companies. Once inside, they either directly siphon company crypto assets or conduct phishing attacks on real employees to gain access.

The new sanctions target Russian citizen Vitaliy Andreyev, North Korean official Kim Ung Sun based in Russia, a North Korean IT delegation, and a Chinese front company. Andreyev is accused of helping convert stolen crypto assets into USD for the regime.

The Treasury stated that the illicit funds were funneled into North Korea’s nuclear and ballistic missile programs. John K. Hurley, Under Secretary for Terrorism and Financial Intelligence, emphasized that under President Trump, the Treasury is committed to protecting Americans from sophisticated fraud schemes and holding perpetrators accountable.

Previously, under the Biden administration, the US also sanctioned North Korean IT firms, including Chinyong in 2023. However, the Trump administration has shifted its approach: instead of targeting decentralized crypto mixers, it focuses on prosecuting direct offenders.

Earlier this month, the Department of Justice secured a conviction against Roman Storm, co-founder of the well-known crypto mixing service Tornado Cash, on money laundering charges. Still, DOJ clarified it will no longer prosecute “truly decentralized” software developers, even if their tools are misused by criminals.

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