[How North Korea Penetrates the Cryptocurrency Industry]
A CoinDesk investigation found that more than a dozen crypto companies unknowingly hired IT workers from North Korea, including high-profile projects Injective, ZeroLend, Fantom, Sushi, Yearn Finance, and Cosmos Hub. These workers used fake identification documents, successfully passed interviews and background checks, and provided authentic work histories.
Hiring DPRK workers is illegal and poses a security risk in countries like the United States that impose sanctions on North Korea. CoinDesk discovered that one company hired DPRK IT workers and was subsequently hacked. For example, Sushi lost $3 million in a hack in 2021.
Truflation founder and Cosmos Hub developer unintentionally hired North Korean workers. These workers often work like regular employees, but their paychecks end up going to addresses linked to the North Korean government. U.S. authorities have warned that North Korea uses the proceeds to fund its nuclear weapons program. According to a United Nations report, these IT workers bring in as much as $600 million a year to the North Korean government.
A CoinDesk investigation revealed North Korea's infiltration of the crypto industry, and many companies ended up publicly sharing their experiences to help other businesses avoid similar problems.
