Key Takeaways
- Over a dozen Bitcoin companies unknowingly hired North Korean IT workers.
- North Korean workers funneled their earnings back to the regime, violating sanctions.
- Sushi lost $3 million in a hack linked to North Korean developers.
Over a dozen blockchain companies, including Cosmos Hub, Sushi, and Yearn Finance, unknowingly hired North Korean IT workers, according to a CoinDesk investigation.
These workers used fake identities, passing interviews and background checks, while funneling their earnings back to North Korea.
Hiring North Korean workers violates U.S. and international sanctions. Furthermore, employing them poses cybersecurity risks, as some companies later suffered hacks linked to North Korean employees.
For instance, Sushi lost $3 million in a 2021 hacking incident after employing North Korean developers.
In some cases, the workers posed as freelancers and delivered functional code, making it harder to detect them. However, once their links to North Korea were uncovered, companies like Truflation and Fantom quickly severed ties. Many firms have since increased security measures, including requiring workers to use webcams during meetings.
North Korean IT workers are reportedly part of a broader strategy to secure remote jobs in the tech industry and channel funds into the country’s nuclear program. A U.N. report estimates that these workers generate up to $600 million annually for Kim Jong Un’s regime.
