U.S. Sanctions Three North Korean Officials Behind IT Worker Farms

On July 25, 2025, the U.S. Department of the Treasury imposed sanctions on three senior North Korean officials and a front company allegedly used to operate IT worker farms abroad. According to U.S. authorities, the individuals created networks of North Korean tech workers posing as local freelancers in countries such as Vietnam to gain remote employment with international firms.

A large portion of the wages earned through these schemes is funneled back to North Korea to support its ballistic missile programs, including nuclear weapons development. The operation allows Pyongyang to bypass U.S. and UN sanctions—and may also serve as a vector for corporate espionage.

The U.S. has sanctioned Korea Sobaeksu Trading Company, believed to act as a front for North Korea’s Munitions Industry Department. Officials are offering a $3 million (€2.55 million) reward for information on any of the three sanctioned individuals.

Separately, on July 24, 2025, a U.S. citizen was sentenced to eight and a half years in prison for operating North Korean IT worker farms on American soil.