Cryptocurrency Industry's Espionage War Escalates: 40% of Job Applicants Allegedly North Korean Agents?
Original Title: North Korean crypto infiltration is much worse than everyone thinks, says SEAL member
Original Author: Pedro Solimano, DL News
Original Translation: Deep Tide TechFlow
North Korean operatives have already infiltrated 15%-20% of crypto companies.
According to a SEAL member, 30%-40% of job applications in the crypto industry may originate from North Korean operatives.
The crypto industry has been criticized for having "the worst operational security (opsec) in the entire computer industry," said Pablo Sabbatella.
The extent of North Korea's infiltration into the crypto industry is far beyond people's awareness.
Pablo Sabbatella, founder of the Web3 audit company Opsek and current Security Alliance member, dropped a bombshell at the Devconnect conference in Buenos Aires: North Korean operatives may have infiltrated up to 20% of crypto companies.
"The situation in North Korea is much worse than everyone imagines," Sabbatella told DL News in an interview. He even shockingly pointed out that 30%-40% of job applications in the crypto industry may come from North Korean operatives trying to infiltrate relevant organizations in this way.
If these estimates are true, their potential for disruption would be incredibly high.
More importantly, North Korea's infiltration is not just about stealing funds through hacking techniques, although they have already stolen billions through sophisticated malware and social engineering tactics. The bigger issue is that these operatives will be hired by legitimate companies, gain system permissions, and manipulate the infrastructure supporting major crypto companies.
According to a report from the U.S. Treasury Department in November of last year, North Korean hackers have stolen over $3 billion in cryptocurrency over the past three years. These funds were subsequently used to support Pyongyang's nuclear weapons program.
How Do North Korean Operatives Infiltrate the Crypto Industry?
North Korean workers typically do not directly apply for positions because international sanctions prevent them from participating in the recruitment process under their true identities.
On the contrary, they will seek uninformed global remote workers to act as "agents." Some of these agents have even transitioned into recruiters, helping North Korean operatives use stolen identities to hire more overseas collaborators.
According to a recent report by Security Alliance, these recruiters reach out to individuals worldwide through freelance platforms (such as Upwork and Freelancer), with a focus mainly on Ukraine, the Philippines, and other developing countries.
Their "transaction" is quite simple: they provide verified account credentials or allow North Korean operatives to remotely use your identity. In return, collaborators can receive 20% of the income, while the North Korean operatives retain 80%.
Sabbatella stated that many North Korean hackers target the United States.
"Their approach is to find Americans to be their 'front end,'" Sabbatella explained, "They will pretend to be from China, unable to speak English, needing someone to help with interviews."
They will then infect the "front end" individual's computer with malware to obtain a US IP address, allowing them to access more internet resources than when in North Korea.
Once hired, these hackers are usually not dismissed because their performance satisfies the company.
"They are highly efficient, work long hours, and never complain," Sabbatella said in an interview with DL News.
Sabbatella provided a simple test method: "Ask them if they think Kim Jong Un is weird or has any flaws." He said, "They are not allowed to say anything negative."
Operational Security Vulnerabilities
However, North Korea's success does not solely rely on sophisticated social engineering.
Cryptocurrency companies—and users—have made it all easier.
"The cryptocurrency industry may be the worst in operational security (opsec) in the entire computer industry," Sabbatella said. He criticized that the founders of cryptocurrency companies are "fully doxxed, perform poorly in protecting private keys, and are easily susceptible to social engineering."
Operational Security (OPSEC) is a systematic process used to identify and protect key information from adversary threats.
The lack of operational security can lead to a high-risk environment. "Almost everyone's computer will be infected with malware at least once in their lifetime," Sabbatella said.
Update Statement
Update: This article has been updated to reflect Sabbatella's clarification that North Korea does not control 30%-40% of crypto applications; this percentage actually refers to the proportion of North Korean operatives in crypto industry job applications.
You may also like

Gold Plunges Over 4%, Silver Crashes 11%, Stock Market Plummet Triggers Precious Metals Algorithmic Selling Pressure?

Coinbase and Solana make successive moves, Agent economy to become the next big narrative

Aave DAO Wins, But the Game Is Not Over

Coinbase Earnings Call, Latest Developments in Aave Tokenomics Debate, What's Trending in the Global Crypto Community Today?

ICE, the parent company of the NYSE, Goes All In: Index Futures Contracts and Sentiment Prediction Market Tool

On-Chain Options: The Crossroads of DeFi Miners and Traders

How WEEX and LALIGA Redefine Elite Performance
WEEX x LALIGA partnership: Where trading discipline meets football excellence. Discover how WEEX, official regional partner in Hong Kong & Taiwan, brings crypto and sports fans together through shared values of strategy, control, and long-term performance.

Best Crypto to Buy Now February 10 – XRP, Solana, Dogecoin
Key Takeaways XRP is set to revolutionize cross-border transactions, potentially reaching $5 by the end of Q2 with…

Kyle Samani Criticizes Hyperliquid in Explosive Post-Departure Market Commentary
Key Takeaways: Kyle Samani, former co-founder of Multicoin Capital, publicly criticizes Hyperliquid, labeling it a systemic risk. Samani’s…

Leading AI Claude Forecasts the Price of XRP, Cardano, and Ethereum by the End of 2026
Key Takeaways: XRP’s value is projected to reach $8 by 2026 due to major institutional adoption. Cardano (ADA)…

Bitcoin Price Prediction: Alarming New Research Cautions Millions in BTC at Risk of ‘Quantum Freeze’ – Are You Ready?
Key Takeaways Quantum Threat to Bitcoin: The rise of quantum computing presents a unique security challenge to Bitcoin,…

XRP Price Prediction: Could XRP Ultimately Surpass Bitcoin and Ethereum?
Key Takeaways XRP has maintained a strong position despite a recent 12% drop, suggesting potential for growth. Analyst…

Best Crypto to Buy Now February 6 – XRP, Solana, Bitcoin
Key Takeaways The cryptocurrency market is experiencing pressure due to a technology-sector selloff, affecting digital assets like Bitcoin.…

South Korea Broadens Crypto Market Investigation Following Bithumb’s $44 Billion Bitcoin Error
Key Takeaways South Korea intensifies scrutiny on cryptocurrency exchange operations after Bithumb’s significant Bitcoin transaction error. Regulatory bodies,…

Tom Lee-Supported Bitmine Dominates 3.6% of Ethereum Supply Post-Price Crash
Key Takeaways Bitmine Immersion Technologies now controls 3.6% of Ethereum’s total supply after strategic purchases during market downturns.…

XRP Yearly Returns Hit Record Low Since 2023
Key Takeaways XRP’s yearly returns are at their lowest since 2023, as the crypto market grapples with a…

BTC Traders Eye $50K as Potential Bottom: Key Metrics to Monitor This Week
Key Takeaways Traders are closely monitoring the potential bottom for Bitcoin at $50,000 as recent price movements suggest…

Fraudulent ‘XRP’ Issued Token Sparks Confusion on the XRP Ledger
Key Takeaways An imposter XRP token is causing bewilderment within the XRP community by being superficially identical to…