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North Korean IT workers have infiltrated the encryption industry on a large scale, with several well-known projects falling victim.
How North Korean IT Workers Infiltrate the Crypto Assets Industry
A recent survey revealed the large-scale infiltration of the Crypto Assets industry by North Korean IT workers. Several well-known blockchain projects, such as Injective, ZeroLend, Fantom, and Sushi, have unknowingly employed IT personnel from North Korea. These North Korean workers used false identities to successfully pass interviews and background checks, obtaining real work experience.
Hiring North Korean workers in countries implementing sanctions such as the United States is illegal and also poses security risks. Investigations have found that several companies employing North Korean IT workers were later targeted by hackers.
The infiltration range and degree of North Korean IT workers is shocking. Renowned blockchain developer Zaki Manian stated that the proportion of resumes and job seekers from North Korea in the entire encryption industry may exceed 50%. He himself inadvertently hired two North Korean IT employees in 2021 to develop the Cosmos Hub blockchain.
These North Korean workers usually use fake identities, providing forged passports and identification documents. Their technical skills vary, with some just looking to "earn a few months' salary," while others show strong practical technical abilities.
Many employers, upon reflection, have noticed some suspicious signs, such as employees frequently changing payment addresses, often altering their usernames, and discrepancies between working hours and claimed locations. Some companies have implemented new preventive measures, such as requiring remote employees to turn on their cameras.
The investigation also found a connection between North Korean IT workers and hacking attacks. The $3 million hack of Sushi in 2021 was related to two North Korean developers who were hired. These workers transferred their earnings to wallet addresses associated with the North Korean regime.
U.S. authorities have been relatively lenient towards companies that inadvertently employ North Korean workers, but this still poses legal and security risks. Many companies are calling for enhanced background checks and increased vigilance. This incident highlights the importance of background investigations in the era of remote work, as well as the unique challenges faced by the Crypto Assets industry.