US Sanctions Russian National, Chinese Firm Aiding North Korean IT Workers

According to US Treasury Department’s Office of Foreign Assets Control (OFAC), sanctions were issued on a Russian national and a Chinese firm for their roles in North Korea’s fraudulent IT worker schemes. The agency said hundreds of US companies have been duped into employing North Korean nationals who used false or stolen identities to obtain IT work and funnel revenue to Pyongyang.

The sanctions target Vitaliy Sergeyevich Andreyev, a Russian national, and Shenyang Geumpungri Network Technology Co., Ltd, a Chinese front for Chinyong Information Technology Cooperation Company, for facilitating payments and supporting North Korean IT workers. OFAC said Andreyev helped transfer about $600,000 through cryptocurrency conversions, working with Kim Ung Sun, a Russia-based North Korean official.

Since 2021, Shenyang Geumpungri’s deployment of North Korean IT workers earned over $1 million in revenue for Chinyong and Korea Sinjin Trading Corporation, which is subordinate to the Pyongyang government. The designation blocks all US property interests and prohibits US parties from transacting with the entities.