How North Korea Penetrates the Crypto Assets Industry

A recent survey revealed the shocking fact that North Korean IT workers are infiltrating the Crypto Assets industry on a large scale. Several well-known blockchain projects, including Cosmos Hub, Injective, ZeroLend, Fantom, Sushi, and Yearn Finance, have unknowingly employed North Korean IT personnel.

These North Korean workers successfully applied for jobs using fake identities and forged documents, passing background checks and showcasing impressive work experience. Their skill levels vary; some have only "earned a few months' salary," while others demonstrate strong technical abilities.

Employing North Korean IT workers not only violates U.S. and United Nations sanctions but also poses serious security risks. Investigations have found that several companies hiring North Korean IT personnel subsequently suffered hacking attacks, including the incident where Sushi lost $3 million in 2021.

North Korean IT workers typically remit most of their income back to North Korea to fund the country's nuclear weapons program. According to estimates by the United Nations, these IT workers generate up to $600 million for North Korea each year.

Many companies have noticed some anomalies after discovering that employees might be from North Korea, such as discrepancies between working hours and claimed locations, as well as cameras always being turned off. Some companies have taken measures to strengthen background checks, but identifying these workers remains challenging.

Although U.S. authorities have not yet prosecuted crypto companies hiring North Korean IT workers, this practice still carries legal risks. At the same time, it raises ethical issues, as most of the income of these workers is exploited by the North Korean regime.

As North Korea continues to leverage IT talent to infiltrate the global tech industry, Crypto Assets companies face serious challenges and need to remain highly vigilant in talent recruitment and cybersecurity.