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The Hidden Threat of North Korean IT Workers in Cryptocurrency

04 Jul 2025
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Intro0:00
Background0:37
Onboarding6:50
Letting DPRK Employees Go11:25
The Motive13:58

The Hidden Threat of North Korean IT Workers in Cryptocurrency

Did you know that North Korean IT workers could be sending ripples through your favorite crypto platforms? With the DPRK leveraging its tech talent, the digital landscape is facing unprecedented risks.

The Rise of DPRK IT Workers

Imagine a world where your remote developer is on payroll but secretly working for a regime under heavy sanctions. North Korea, known for clandestine cyber operations, has quietly infiltrated the global IT workforce. This resurfaced after an FBI warning, highlighting dangers in blockchain and crypto fields. Google’s cyber threat intelligence arm, Mandant, compiled over 450,000 hours of incident response data in its 2025 MTRS report. In 2024, Mandant observed that DPRK IT workers emerged as a new threat category, accounting for 5% of initial infection vectors and ranking as the most frequently observed insider threat group in the Americas. Nearly every CISO at Fortune 500 firms admitted to hiring at least one North Korean IT worker—often unknowingly.

The Nature of Problematic Hiring Practices

Western companies chasing skilled labor have inadvertently opened doors to North Korean IT contractors. Mandant estimates thousands of DPRK IT workers have entered the market, operating under multiple online personas to secure jobs. In 2023, cybersecurity firm SentinelOne reported receiving around 1,000 crypto-related job applications from suspected DPRK candidates. Many fabricate CVs, boasting degrees from prestigious international universities that are hard to verify. They often maintain a social media trail to bolster their cover, interacting with actual alumni and posting false endorsements. Such deceptive practices make background checks complex and leave employers exposed to compliance failures.

The Work Experience of DPRK IT Workers

Once hired, these remote IT workers integrate seamlessly across sectors—from finance to media to tech startups—delivering solid results that win praise from managers. Yet beneath the surface, the specter of corporate espionage or intellectual property theft looms. Mandant notes that their daily activities closely mirror those of legitimate employees, blending in with routine network traffic. Although direct malicious acts remain rare, the potential for misuse is ever-present if the DPRK regime decides to pivot from revenue generation to sabotage. This duality keeps security teams on edge: a star performer today could become a sleeper threat tomorrow.

Navigating the Hiring Maze

DPRK IT workers employ sophisticated tradecraft to mask their true origins. Many are physically based in China or Russia, using VPNs—sometimes the “Astral VPN”—to tunnel connections through Western endpoints. They adjust their working hours to match time zones in North America or Europe, further obscuring red flags. During video interviews, some even deploy face-swapping filters or avoid appearing on camera altogether. Companies offering corporate devices unwittingly help: facilitators intercept laptops in Europe or the U.S. and forward them to DPRK “laptop farms,” where remote access software maintains a Western IP footprint. This elaborate infrastructure ensures the workers appear indistinguishable from bona fide local hires.

Consequences of Discovering the Truth

When law enforcement finally rings HR with alarming news, companies face tough choices. Terminating a top performer can disrupt projects and spark internal backlash. As FBI agent Elizabeth Pelka observed:

"Oh but Johnny is our best performer—do we actually need to fire him?" — Elizabeth Pelka

Employers must weigh compliance risks against operational continuity. Unknowingly hiring an agent of a sanctioned state exposes companies to legal penalties, reputational damage, and potential sanctions enforcement actions.

Exploring the Economic Motives Behind DPRK IT Workers

North Korea’s economy is strangled by UN and unilateral sanctions, forcing the regime to monetize its educated youth abroad. Defectors claim DPRK IT workers earn around $100,000 per year, with 30–40% remitted back to Pyongyang. Based on U.S. estimates of 4,000 overseas IT professionals, annual revenues could hit $400 million, of which roughly $120 million flows to the state. U.S. government figures range from $200 million to $600 million, putting the IT worker program just below the DPRK’s restaurant operations but well above other petty trade. For North Korea, the remote work model offers a low-risk, high-yield stream of hard currency.

Conclusion: The Urgent Need for Awareness

As North Korean IT workers continue to slip into Western companies—especially in the crypto space—organizations must adapt their hiring and security protocols. Vigilance in vetting remote candidates is no longer optional but essential for maintaining corporate integrity and national security.

  • Actionable Takeaway: Implement multi-factor identity verification and leverage threat intelligence feeds focused on North Korean cyber tactics to screen remote applicants.

What steps will your team take to fortify its defenses against this hidden crypto threat?