How North Korean IT Workers Are Infiltrating the Cryptocurrency Industry

The cryptocurrency industry is facing a serious security threat – IT workers from North Korea are infiltrating the industry on a massive scale. Recent investigations have revealed that many high-profile blockchain projects and crypto companies unknowingly hire North Korean IT staff, which not only poses legal risks, but can also lead to serious security risks.

! 10,000-word investigation: How North Korea is infiltrating the cryptocurrency industry

The Scale and Methods of Penetration

The investigation found that several high-profile projects, including Injective, ZeroLend, Fantom, Sushi, Yearn Finance, and Cosmos Hub, have employed North Korean IT workers. Using forged identity documents, the workers were able to secure job offers through interviews and background checks.

The infiltration scale of North Korean IT workers may far exceed expectations. Renowned blockchain developer Zaki Manian stated that the proportion of resumes, job seekers, or contributors from North Korea in the entire Crypto Assets industry may exceed 50%.

These workers often use fake identities claiming to be from countries such as Japan, Singapore, etc. They offer fake passports and IDs, pass interviews and background checks, and show an impressive history of GitHub code contributions.

! 10,000-word investigation: How North Korea is infiltrating the cryptocurrency industry

Employer's dilemma

Many employers only find out after the fact that they have inadvertently hired North Korean IT workers. While the quality of the work of these workers varies, some do demonstrate strong technical ability.

However, hiring North Korean IT workers not only violates U.S. and U.N. sanctions, but also poses a serious security risk. The investigation found that several companies employing North Korean IT workers were later hacked, some of which could even be traced directly back to the workers.

! 10,000-word investigation: How North Korea is infiltrating the cryptocurrency industry

Security Risks and Hacking

In September 2021, Sushi's MISO platform was hacked and lost $3 million. The investigation revealed that the attack was linked to two North Korean developers previously hired by Sushi.

Recently, two projects, Truflation and Delta Prime, were also hacked, losing about $5 million and more than $7 million, respectively. While it's unclear whether these attacks are directly related to North Korean IT workers, these incidents highlight the security threats facing the crypto industry.

! 10,000-word investigation: How North Korea infiltrated the cryptocurrency industry

Future Challenges

Faced with the infiltration of North Korean IT workers, the cryptocurrency industry faces serious challenges. Companies need to strengthen background checks and security measures, but it's not easy to completely eliminate this infiltration. At the same time, this issue also highlights the potential risks that remote work and anonymous development pose in the crypto industry.

As North Korea continues to refine its infiltration strategy, the crypto industry needs to be more vigilant and adopt stricter security measures to protect itself and its users. This issue is not only related to the safety of individual companies, but can also affect the development of the industry as a whole and public trust.

! 10,000-word investigation: How North Korea is infiltrating the cryptocurrency industry