A new and more advanced threat has emerged in the crypto space; North Korean hackers are posting fake applications on job boards and have already made off with $600 million.
This operation targets crypto projects to get sensitive data, hack systems and steal assets. A DL News investigation found these fake applicants are a major security risk.
According to the UN Security Council, over 4,000 North Koreans have been sent to infiltrate the tech industry, including crypto, undercover.
The council’s report found North Korean hackers have stolen $3 billion worth of crypto assets through 58 suspected cyber attacks over the last 7 years. While the exact role of fake employees in these attacks is unclear, experts say this is just the beginning.
This is a big problem as the industry scales. With Bitcoin ETFs going mainstream and DeFi projects like Solana and Aave growing, the demand for developers is higher than ever.
Major crypto exchanges like Coinbase and Binance posted over 1,200 new job openings in May, the industry is growing fast.
But the influx of fake applicants goes against the values of the crypto industry, anonymity and pseudonymity.
The lack of background checks makes it easy for North Korean operatives to get hired by crypto companies. So 95% of clients have stopped hiring pseudonymous developers to mitigate this risk.
For North Korean crypto workers the financials are big. Some earn up to $60,000 a month, with the top earners keeping 30% and the rest going to the authorities in Pyongyang. That’s a lot of money in a country where poverty is extreme.
The infamous Lazarus Group, a North Korean hacking operation, was behind the $540 million Ronin bridge hack in 2022.
As of 2023, Lazarus has stolen an estimated $3.4 billion in cryptocurrencies since its inception, it is believed that North Korea might be funding its nuclear weapons program through these cyber activities.
The North Korean hackers are already inside, we need to be more aware and more strict on hiring.
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