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- US Treasury sanctioned individuals and firms tied to North Korea’s crypto-linked IT worker fraud scheme.
- Authorities identified 21 cryptocurrency wallet addresses connected to the network across multiple blockchains.
- Meanwhile, policy advocates are urging regulators to rethink Bitcoin’s strict banking risk classification.
The United States government has intensified its crackdown on cyber-enabled financial crime linked to North Korea, sanctioning individuals and companies accused of running fraudulent IT worker schemes that target global businesses, including cryptocurrency firms. At the same time, a separate debate is unfolding in Washington over how banks should treat Bitcoin under international banking rules—an issue that could shape crypto’s role in the traditional financial system.
The developments highlight two parallel trends in the crypto industry: increased regulatory scrutiny over illicit activity and growing pressure to modernize rules governing digital assets.
Treasury Targets North Korean IT Worker Fraud Network
The U.S. Department of the Treasury’s Office of Foreign Assets Control (OFAC) announced sanctions against six individuals and two organizations accused of helping North Korea generate funds through fraudulent IT employment schemes.
Those sanctioned include the North Korea-linked firm Amnokgang Technology Development Company and Vietnam-based Quangvietdnbg International Services Company Limited. Authorities also named several individuals allegedly involved in the network across multiple countries.
According to the Treasury Department, the scheme involves North Korean operatives posing as remote tech workers and securing jobs with legitimate companies worldwide. The earnings are then funneled back to North Korea to help finance its weapons programs.
The sanctions freeze any U.S.-based assets tied to those individuals or companies and prohibit Americans from conducting business with them.
Investigators say the network has become increasingly sophisticated, operating across countries such as Vietnam, Laos, and Spain.
Crypto Addresses Linked to the Scheme
Blockchain analytics firm Chainalysis reported that the sanctions list includes 21 cryptocurrency wallet addresses across Ethereum and Tron networks.
The company noted that North Korean operators are increasingly moving funds across multiple blockchains to obscure transactions and evade detection.
These schemes typically rely on stolen identities and fabricated professional profiles to secure jobs with global companies. In some cases, investigators say the workers have also installed malware inside corporate networks to steal sensitive information or intellectual property.
Security experts warn that cryptocurrency companies remain a frequent target due to the sector’s remote workforce and digital payment systems.
Bitcoin Policy Institute Challenges Harsh Bank Rules
While enforcement actions increase, policymakers are also debating how banks should handle digital assets.
The Washington-based Bitcoin Policy Institute says it plans to push regulators to reconsider how Bitcoin is classified under international banking rules set by the Basel Committee on Banking Supervision.
Under the Basel framework, Bitcoin currently carries a 1,250% risk weighting. That requirement forces banks to hold capital equal to the full value of any Bitcoin on their balance sheets, effectively discouraging institutions from holding the asset.
Advocates argue the classification is overly punitive and prevents banks from offering services to crypto companies and investors.
The debate comes as the Federal Reserve prepares to release proposals explaining how U.S. banks should implement the final phase of the Basel rules.
Together, the sanctions and regulatory discussions illustrate the complex environment facing the cryptocurrency industry.
Also Read: Bybit CEO Updates on $1.4B Hack: 68.5% Traced, North Korean Link
Governments are moving aggressively to curb illicit activity tied to digital assets while also grappling with how to integrate cryptocurrencies into traditional financial systems.
How regulators strike that balance could shape the next phase of institutional adoption and security standards across the crypto market.
Disclaimer: The information in this article is for general purposes only and does not constitute financial advice. The author’s views are personal and may not reflect the views of Chain Affairs. Before making any investment decisions, you should always conduct your own research. Chain Affairs is not responsible for any financial losses.
I’m a crypto enthusiast with a background in finance. I’m fascinated by the potential of crypto to disrupt traditional financial systems. I’m always on the lookout for new and innovative projects in the space. I believe that crypto has the potential to create a more equitable and inclusive financial system.
