Last week, it was reported that developers and IT professionals employed by North Korea had secured positions in various crypto projects, presenting two channels for the regime to gain funding.

Why is this Important?
Given that North Korea faces significant sanctions, employing developers from the country could lead to violations of U.S. law. There are also indications that some individuals in these roles may have facilitated hacks on the projects they were associated with.

CoinDesk revealed that numerous well-known crypto firms inadvertently hired North Korean IT people, which raises significant concerns for them.

This issue is not new; cybersecurity experts have highlighted cases of North Korea infiltrating U.S. companies to gain employment.

It has been noted that many of these workers are required to send a substantial portion of their earnings back to the North Korean regime, enabling its continued operations. Companies need to be vigilant about these risks as cryptocurrencies gain more visibility.

“The U.S. government has adopted a lenient stance so far regarding charges, suggesting these firms were, at the very least, victims of sophisticated identity fraud.”
“Given the scrutiny on crypto is increasing, this needs to be closely monitored.”

Projects that have employed DPRK workers have faced various hacks, underlining the tangible risks these associations can create.