how they infiltrated the crypto world

The workers of North Korea seem to continue infiltrating the crypto sector through their hiring with false documents. In fact, a report reveals that over twelve blockchain companies have unknowingly hired IT workers from the Democratic People’s Republic of Korea (DPRK). 

North Korea and hiring in the crypto sector with fake documents

According to what reported, it seems that North Korean workers continue to manage to infiltrate the crypto sector, through hirings with false documents.

In fact, in the USA, and in other countries that sanction North Korea, hiring workers from the Democratic People’s Republic of Korea (DPRK) is illegal. This happens because employing them in companies within the territory would put the entire country at risk for its security. 

Yet, it seems that the process cannot be stopped. From what has emerged, in fact, over 12 blockchain companies have been identified that have unknowingly hired IT workers from the DPRK. 

In practice, such workers used fake identity documents, and managed to pass the various interviews, also passing the reference checks. The stories presented by these fraudulent workers were seen by blockchain companies as authentic work stories.

Among the various established blockchain projects that later discovered they had people from the DPRK on their team are Injective, ZeroLend, Fantom, Sushi, Yearn Finance, and Cosmos Hub.

North Korea: hiring in crypto companies can become dangerous

Speaking always for those countries like the USA that sanction North Korea, this phenomenon of hiring IT workers from the DPRK is becoming really dangerous. 

In this regard, the US authorities have intensified warnings that these North Korean workers infiltrate technology companies such as those in crypto, and use the proceeds to finance their State’s nuclear weapons program. 

Not only that, a report from the United Nations in 2024 states that these IT workers cash in up to 600 million dollars a year for Kim Jon Un’s regime.

Zaki Manian, an important blockchain developer who unknowingly hired two North Korean workers to contribute to the development of the Cosmos Hub blockchain in 2021, stated that the situation is in strong bull. Here are his words: 

“The percentage of incoming resumes, or people seeking jobs, or wanting to contribute – anything – that likely come from North Korea is over 50% in the entire cryptocurrency sector. Everyone is struggling to filter these people.”

Protagonist of thefts and crypto fraud in 2023

At the beginning of this 2024, the report by TRM Labs highlighted how North Korean hackers were the protagonists of crypto thefts and scams in 2023.

Specifically, the North Korean malicious actors were able to steal over 600 million dollars in funds, for a cumulative loot of almost 3 billion dollars in the last 6 years. 

Speaking of 2024, however, the most recent news involving North Korea and crypto hackers concerns the attack suffered by India’s crypto-exchange WazirX. 

And in fact, last July, the crypto-exchange had to suspend crypto and Indian rupee withdrawals precisely because of the hacker attack that stole as much as $234.9 million in digital assets from WazirX. 

Analyzing the type of attack used, the blockchain company Elliptic revealed that they are the same schemes and techniques typical of North Korean hackers.