North Korea's Digital Trojan Horse: Crypto Firms Infiltrated to Fund Nuclear Ambitions

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North Korea's Digital Trojan Horse: Crypto Firms Infiltrated to Fund Nuclear Ambitions

Bitget-RWA2025/11/24 03:18

By:Bitget-RWA

- A U.S. intelligence officer warns North Korea has infiltrated 15-20% of global crypto firms to fund nuclear programs, exploiting remote workers in developing nations as intermediaries. - Pyongyang operatives use 20% earnings-sharing schemes to recruit freelancers on platforms like Upwork , installing malware to access U.S. infrastructure while evading sanctions. - The U.S. Treasury reports $3B stolen in crypto over three years, with North Korea leveraging stolen IP and embedded workers to maintain long-t

An intelligence officer from SEAL Team has disclosed that North Korean operatives have penetrated between 15% and 20% of cryptocurrency companies worldwide, a rate significantly exceeding earlier assumptions. This revelation, shared by Pablo Sabbatella, the founder of Web3 security firm opsek and a member of the Security Alliance, highlights the escalating danger posed by North Korea’s cyber-espionage activities. Sabbatella

cautioned that as many as 30% to 40% of job applicants

in the crypto sector could be North Korean agents, who use remote workers in less developed nations as proxies to circumvent sanctions and infiltrate vital systems.

Their methods are highly advanced. Due to global sanctions, North Korean hackers cannot apply for jobs directly, so they

enlist remote workers from countries such as Ukraine

and the Philippines to serve as go-betweens. These intermediaries are typically offered a 20% share of the income for providing their identities or accounts on freelance platforms like Upwork and Freelancer. Once inside, the North Korean agents deploy malware on the intermediaries’ devices to gain access to U.S. IP addresses and sensitive networks. Their consistent work ethic and lack of complaints

frequently help them retain their positions

for long durations.

The financial impact is substantial. The U.S. Treasury

disclosed that North Korean cybercriminals

have stolen more than $3 billion in digital assets over the last three years, channeling these funds into North Korea’s nuclear weapons initiatives. The extent of this infiltration goes beyond theft, involving embedded operatives who oversee infrastructure at leading crypto companies, presenting an ongoing threat to the sector’s safety.

Sabbatella pointed out the sector’s susceptibility, noting that many crypto founders have weak operational security (OPSEC). “Most are fully doxxed, fail to protect private keys adequately, and are easy targets for social engineering,” he stated

as reported

. To identify infiltrators, he recommended inquiring about opinions on Kim Jong Un, since North Korean agents are forbidden from speaking negatively about their leader

according to expert analysis

These disclosures come as tensions on the Korean Peninsula intensify. North Korea recently

denounced a defense pact between the U.S. and South Korea

that permits Seoul to develop nuclear-powered submarines, warning that this could ignite a regional arms race. The agreement, authorized by President Donald Trump during his latest visit to South Korea, has

provoked strong opposition from Pyongyang

, which sees it as a violation of denuclearization promises.

South Korea’s newly elected President, Lee Jae Myung, is confronted with the dual task of pursuing diplomatic engagement with Pyongyang while advancing military upgrades. Although he has halted anti-North broadcasts and reopened communication lines,

experts emphasize the importance

of strengthening cyber-intelligence and deepening cooperation with Japan. Public backing for South Korea’s own nuclear arsenal has

risen, with 76% of respondents

supporting the idea in a recent survey.

North Korea's Digital Trojan Horse: Crypto Firms Infiltrated to Fund Nuclear Ambitions image 0

The wider geopolitical environment is evolving. North Korea’s partnerships with Russia and China, which include a mutual defense agreement and troop deployments to Ukraine,

have strengthened its strategic leverage

. This cooperation with an “anti-Western bloc” in Northeast Asia

makes it harder

to isolate North Korea through sanctions alone.

As the cryptocurrency industry contends with North Korean infiltration, these events underscore the complex links between cybercrime, international politics, and economic conflict. For South Korea, the challenge lies in balancing deterrence with dialogue, all while protecting its technological and financial systems from threats posed by both state actors and independent groups.

Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.

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