North Korea funnels millions of crypto via Russia

North Korea has used Russian intermediaries for years to convert millions of dollars in crypto coins into cash. This is according to research by blockchain analysis company Chainalysis.

The United States has imposed new sanctions on individuals and companies that Washington believes are contributing to the financing of North Korea's weapons program.

The US sanctions agency OFAC announced on Wednesday that it had placed ten people and one company on a sanctions list. They would be involved in a network of North Korean IT employees working under false identities for foreign companies.

Two of those involved are the Russians Ilya Boykov and Vitold Obertas.

According to the U.S. Treasury, Boykov has exchanged about $3.5 million in crypto coins for sanctioned company Alis since 2024. Obertas is said to have processed nearly $2 million in crypto transactions for North Korean officials since January 2025.

Chainalysis discovered how the money was moved. In one case under investigation, a North Korean IT employee received regular payments in stablecoins. These were then converted into Ethereum (ETH) and forwarded to Boykov via multiple crypto wallets. He used the Russian crypto exchange Garantex to cash out the money.

North Korea has long used IT specialists who use fake identities to be hired by foreign companies, including crypto projects.

Through these constructions, the regime can earn income that, according to the US authorities, is used for its weapons program. The risks are not limited to salary payments. Employees can also gain access to sensitive business systems and crypto assets through their role.

In June 2025, the U.S. Department of Justice sued four North Koreans. They were suspected of fraudulent IT operations and the theft of more than $900,000 from crypto companies in the United States and Serbia.

According to Chainalysis, the Russian network is part of a larger operation with which North Korea is trying to raise money worldwide.