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yesterday

U.S. Sanctions Network Backing North Korea’s Remote IT Worker Scheme as Allies Warn of AI-Aided Tactics

The action freezes assets linked to crypto-to-cash transfers via front companies that investigators say fund Pyongyang’s weapons programs.

SEOUL, SOUTH KOREA - 2025/05/09: People watch a 24-hour Yonhap News TV broadcast on a large screen at Seoul Railway Station, showing footage of a joint striking drill involving long-range artillery and missile systems conducted by the Korean People's Army eastern front division at an undisclosed location in North Korea. North Korean leader Kim Jong Un oversaw a joint striking drill involving long-range artillery and a new variant of tactical ballistic missiles, reaffirming the combat readiness of the country’s nuclear forces, state media KCNA reported on May 9. The exercise featured a 600mm multiple rocket launcher and the Hwasongpho-11-Ka tactical ballistic missile. South Korea’s military detected multiple short-range ballistic missile launches from Wonsan between 8:10 and 9:20 a.m. on May 8—North Korea’s fourth missile test of the year. (Photo by Kim Jae-Hwan/SOPA Images/LightRocket via Getty Images)
This file photo, released by Reuters, shows a sign marking the U.S Treasury Department in Washington, D.C., on Aug. 6, 2018. (Yonhap)
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Overview

  • Treasury’s OFAC designated Russian national Vitaliy Sergeyevich Andreyev, North Korean official Kim Ung Sun, China-based Shenyang Geumpungri Network Technology, and Korea Sinjin Trading Corporation.
  • Officials say Andreyev worked with Kim since December 2024 to convert cryptocurrency into nearly $600,000 in U.S. dollars tied to Chinyong Information Technology Cooperation Company.
  • Shenyang Geumpungri was identified as a Chinese front for a delegation of DPRK IT workers that generated over $1 million in profits for Chinyong and Sinjin since 2021.
  • The United States, Japan, and South Korea issued a joint statement citing serious concerns over evolving DPRK tradecraft that leverages AI tools and foreign facilitators, following a Tokyo forum with more than 130 tech firms co-hosted by Mandiant.
  • Sanctions block U.S.-linked assets and bar U.S. persons from transactions with designees, building on recent seizures and prior listings targeting the broader DPRK IT-worker network.