North Korean crypto payments reached Russian exchange Garantex through an intermediary, blockchain analytics firm Chainalysis said, as the United States sanctioned people it accused of supporting North Korean IT worker schemes.

North Korean crypto conversions targeted

Treasury’s October 28 sanctions targeted 10 individuals and one entity over their alleged roles in government-run IT worker schemes. The department said the schemes defraud US businesses and generate revenue for North Korea’s weapons programs.

Among those designated were Russian nationals Ilya Aleksandrovich Boykov and Vitold Viktorovich Obertas. Treasury said Boykov had exchanged and converted the equivalent of $3.5 million in cryptocurrency transactions for sanctioned company Alis since 2024. It said Obertas had conducted nearly $2 million in cryptocurrency conversions for North Korean officials since January 2025.

How the Garantex transfer worked

Chainalysis described a wallet linked to a North Korean IT worker that received regular stablecoin payments. The funds were converted into Ether and sent through consolidation addresses to Boykov, who then sent the cryptocurrency to Garantex to cash out, the firm said.

Treasury said North Korean IT workers use fraudulent documents, stolen identities and fabricated personas to secure jobs with legitimate companies. It said the government appropriates most of their wages and that workers have also exploited access to corporate networks to steal information.

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