October 08, 2024

How North Koreans Infiltrated the Crypto Industry to Fund the Regime - Ep. 715

1 hour 13 minutes

The crypto community is facing a new kind of threat—North Korean devs are infiltrating crypto companies to steal millions and funnel funds back to the regime in order to bypass sanctions.

In this episode, Sam Kessler, CoinDesk’s deputy managing editor for tech and protocols, and Taylor Monahan, security at MetaMask, explain how North Korea has embedded its operatives into the crypto space, the red flags companies should watch for, and what these hackers are doing once inside crypto firms.

Plus, they share their most interesting stories about how these hackers have gotten hired at crypto companies and the red flags the industry should know about.

Show highlights:

What Sam found in his investigation about North Koreans infiltrating the industry

How Taylor has found that this is a recurring issue

Why Sam and Taylor refer to these infiltrated workers as ‘IT’ workers

The most interesting stories that Sam and Taylor have discovered

The trends in the hiring process that lead to North Koreans being hired and also what the big red flags are

How “easy it is to de-anonymize” addresses and transactions in blockchains

What assets and networks these workers often use to get paid

How, after infiltrating a company, those projects get hacked

How to deal with a situation in which you’ve already hired North Koreans

How to protect a protocol from another type of North Korean hack: by hacking groups

Whether the industry is getting better at security

Visit our website for breaking news, analysis, op-eds, articles to learn about crypto, and much more: unchainedcrypto.com

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Guests:

Sam Kessler, CoinDesk's deputy managing editor for tech and protocols

CoinDesk: How North Korea Infiltrated the Crypto Industry

Taylor Monahan, Co-Founder of MyEtherWallet

Previous appearances on Unchained:

The QuadrigaCX Case: Taylor Monahan on What We Know From the Blockchain

MyCrypto's Taylor Monahan on Why She's Not a Fan of ICOs

Links

Previous coverage of Unchained on North Korea:

Why North Korea Is Interested in Cryptocurrency

Yeonmi Park on Why Doing Business With North Korea Is Like Buying a Ticket to a Concentration Camp

Others:

DL News: North Korean hackers are infiltrating crypto job boards in a ‘quiet war’ that rakes in $600m

FBI PSA: North Korea Aggressively Targeting Crypto Industry with Well-Disguised Social Engineering Attacks

Chainalysis:

2024 Crypto Crime Mid-year Update Part 1: Cybercrime Climbs as Exchange Thieves and Ransomware Attackers Grow Bolder

Funds Stolen from Crypto Platforms Fall More Than 50% in 2023, but Hacking Remains a Significant Threat as Number of Incidents Rises

Russian and North Korean Cyberattack Infrastructure Converge: New Hacking Data Raises National Security Concerns

ZachXBT: How Lazarus Group laundered $200M from 25+ crypto hacks to fiat from 2020–2023

Timestamps:

00:00 Intro

01:59 Sam's findings on North Korean workers infiltrating crypto projects

04:04 Taylor on the recurring nature of the issue

09:05 Why they’re referred to as ‘IT’ workers

16:17 Most interesting infiltration stories

34:16 Hiring trends and red flags for North Korean operatives

44:02 How easy it is to de-anonymize blockchain transactions

51:05 Assets and networks used for payment

54:06 How infiltrated companies end up getting hacked

58:36 What to do if you've already hired North Korean operatives

1:00:21 How to protect a protocol from being hacked

1:06:22 Is the industry improving in security?

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By Laura Shin

4.6

11821,182 ratings