As the crypto industry continues to grow massively in adoption, North Korean operatives have escalated their infiltration tactics into the sector by exploiting job postings, a recent investigation by DL News has revealed.

Shaun Potts, founder of crypto-specific recruiting firm Plexus, noted:

It’s an operational hazard for the industry. It’s an ongoing thing, in the same way that hacking is a thing within tech. You can’t stop it, but you can minimise its risks.

A Closer Look At The Method

Cybersecurity experts said North Korean hackers use social engineering to target cryptocurrency companies. Security expert Taylor Monahan explained how these ‘nefarious’ hackers trick employees into “unwittingly” allowing them access to the company’s private data.

According to Monahan, the attackers usually approach potential victims on social networks or specialized messaging apps, offering fake jobs or impairments to technical support requests.

After that communication is established, they convince employees to download files filled with malicious software in the name of a “skills test” or resolve a software bug, leading to catastrophic data breaches.

For example, one long-time fave method: – Contact employee via social/messaging app – Direct them to a Github for a job offer, “skills test,” or to help with a bug – Rekt individual’s device – Gain entry to company’s AWS – Rekt company (and their users)https://t.co/nVZ9tVJgKH pic.twitter.com/NJPSJEH1kF

— Tay (@tayvano_) July 8, 2024

Talking about how individuals could avoid falling for this scam, Monahan, in a recent post on X, advised:

Instead of thinking you’re invincible: Eliminate single points of failure Use hardware wallets / hardware MFA Don’t run/build code from strangers Use diff devices for talking vs accessing crypto Don’t judge Learn from other’s mistakes Educate those around you STAY SKEPTICAL!

Broader Implications And Global Impact

Notably, this trend of job posting hacks appears to be an alarming scheme extending well beyond crypto borders.

According to the DL News report, the United Nations Security Council has quoted the involvement of over four thousand North Korean nationals working under “bogus credentials” in different Western tech firms for channeling more than $600 million to their home country every year.

A notable case study for the potential attractiveness of hunting grounds lies in the partially anonymous crypto sector, where it is hard to fish out identity verifications within such digital transactions and job applications.

The damage caused by these breaches is extensive, as losses from crypto hacks associated with North Korean actors have already exceeded $3 billion. The cashing out the funds exploited from the respective hacks is quite intriguing.

A recent Chainalysis report revealed increased traditional money launderers using cryptocurrency for on-chain money transfers, differentiating from typical on-chain crypto crimes.

According to the report, nearly 80% of illicit funds are transferred through intermediary wallets, with other methods including mixers, privacy coins, and cross-chain protocols.

Featured image created with DALL-E, Chart from Tradingview

The rehabilitation trustee for the now-defunct Mt. Gox exchange moved over $6 billion worth of bitcoin on Tuesday morning as it took further steps toward reimbursing creditors.

JUST IN: Mt. Gox moved 95,870 #Bitcoin worth $6 billion to unknown addresses 👀 pic.twitter.com/duCIiVPcsK

— Bitcoin Magazine (@BitcoinMagazine) July 16, 2024

On-chain data shows that Mt. Gox's wallet transferred around 95,870 BTC across two transactions to newly-created addresses. The first shift of 47,000 bitcoin was valued at nearly $3 billion.

The destination wallets remain unidentified but are presumed to be linked to Mt. Gox's ongoing repayment process. The exchange owes creditors $9 billion in total, stemming from Bitcoin lost in Mt. Gox's infamous 2014 hack.

Saturday's large transactions follow initial smaller test transfers last week as Mt. Gox prepared to distribute funds. Analysts have feared the payouts could weigh on Bitcoin's price if creditors immediately liquidate holdings.

So far, the transfers have coincided with dips below $64,000 as markets reacted cautiously. But the expectation remains that most creditors will hold the restored coins rather than rush to sell.

While unnerving for traders, the long-awaited Mt. Gox reimbursement will close the book on one of the Bitcoin industry's most infamous episodes. Tens of thousands of early adopters lost holdings when the pioneering exchange collapsed.

Over eight years later, creditors will finally recoup some of those early losses. The saga underscores Bitcoin's resilience and the community's commitment to accountable custody and transparent transactions.