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

Concerns Behind the Binance Customer Service Controversy

Mergers and acquisitions in the cryptocurrency market are exceptionally active

SpaceX Stock Prediction After the IPO: Can SPCX Reach $200 Before QQQ Inclusion?

Congratulations to Carl Moon on His Historic Ferrari Challenge Le Mans Podium Triumph
Crypto influencer and racing enthusiast Carl Moon finished third in the Ferrari Challenge Le Mans Coppa Shell class, marking his best result of the year. As his racing partner and sponsor, WEEX celebrates this remarkable achievement and continues to lead crypto’s journey beyond boundaries, uniting the innovation of digital assets with the passion of motorsport.

A16Z: The sun bears witness, SpaceX is worth 7.5 trillion

The stablecoin positioning battle escalates: When compliance is just a ticket to entry, will USD1 become the biggest winner?

Can the CLARITY Act Become Law by July 4? Everything You Need to Know About the Final Battle

How to exit after asset tokenization?

The foundation of SpaceX's trillion-dollar valuation: Who is dividing Musk's annual capital expenditure of tens of billions?

France vs Senegal World Cup 2026: Mbappe’s New Era Begins Against a Historic Rival

SharpLink CEO: How to understand that Ethereum developers have just surpassed 1 million?

Morning Report | MiCA grace period expires on July 1; Kalshi's trading volume in the first week of the World Cup breaks $5.1 billion, setting a record

What is the connection between Huang Zheng of Pinduoduo and blockchain?

Morning Report | Prediction market platforms like Kalshi and Polymarket jointly sue Kentucky over 14.25% trading tax; Bridgewater founder discusses decision-making in the AI era: principled thinking should run parallel to AI, human insight remains irre...

If the AI bubble has already burst, who will truly remain?

Paul Graham: How to Make a Billion Dollars

After 18 years, blockchain has finally started to head towards the main channel

Claude enforces "facial recognition for household registration," starting in July, no ID card means no access?
Concerns Behind the Binance Customer Service Controversy
Mergers and acquisitions in the cryptocurrency market are exceptionally active
SpaceX Stock Prediction After the IPO: Can SPCX Reach $200 Before QQQ Inclusion?
Congratulations to Carl Moon on His Historic Ferrari Challenge Le Mans Podium Triumph
Crypto influencer and racing enthusiast Carl Moon finished third in the Ferrari Challenge Le Mans Coppa Shell class, marking his best result of the year. As his racing partner and sponsor, WEEX celebrates this remarkable achievement and continues to lead crypto’s journey beyond boundaries, uniting the innovation of digital assets with the passion of motorsport.
