Kraken, a major crypto exchange, exposed a North Korean hacker who applied for a job using a fake identity. The incident was revealed in a May 1 blog post. The person posed as an engineering candidate named Steven Smith.
Kraken’s security and recruitment teams moved the candidate through the hiring process to investigate. They later confirmed that the applicant was part of a wider network tied to North Korean state-sponsored cybercrime.
The person used a suspicious email connected to known North Korean hacker activity. The candidate changed their name during interviews and altered their voice several times. Kraken also detected signs of outside coaching.
Fake Identities and Technical Red Flags Detected
An internal Open-Source Intelligence (OSINT) investigation exposed the use of multiple fake identities by the applicant. Several of these identities had prior links to crypto firms. One of them appeared on the U.S. sanctions list.
Kraken identified clear inconsistencies during the process. The applicant accessed remote Mac computers through a Virtual Private Network (VPN). They also submitted altered identification documents. These actions raised concerns about planned infiltration.
During the final interview, Kraken’s Chief Security Officer Nick Percoco questioned the applicant. The hacker failed to confirm their location or citizenship.
“Their job is to start employment to steal intellectual property, steal money from those companies, take home a paycheck, and do it in a widespread way,”
Percoco told CBS.
Huione Group Accused of Aiding North Korean Crypto Crimes
The Financial Crimes Enforcement Network (FinCEN) proposed banning the Huione Group from the U.S. financial system. The Cambodia-based group allegedly helped North Korean hackers move stolen funds.
U.S. Treasury Secretary Scott Bessent stated,
“Huione Group has established itself as the marketplace of choice for malicious cyber actors like the DPRK and criminal syndicates, who have stolen billions of dollars from everyday Americans.”
FinCEN found that Huione laundered over $4 billion between August 2021 and January 2025. Their platforms—Huione Pay, Huione Crypto, and Haowang Guarantee—were used for payment services connected to crypto crimes.
The ban would block Huione from accessing U.S. correspondent banking services. Officials said this would weaken DPRK cybercrime operations and disrupt money laundering channels.
DPRK Hackers Use Social Engineering and Malware to Target Crypto
North Korea-linked hackers stole more than $659 million from crypto firms in 2024. The U.S., Japan, and South Korea released a joint statement confirming these incidents.
The statement said that hackers used social engineering, fake job applications, and malware such as AppleJeus and TraderTraitor to access internal systems. North Korean IT workers were also identified as insider threats to private crypto companies.
These workers often apply for remote roles, pretending to be citizens of other countries. Once hired, they can access sensitive data or move funds internally.
North Korean Lazarus Group Tied to Major Crypto Theft Cases
Moreover , the Lazarus Group, North Korea’s state-backed hacker unit, has been linked to several large attacks. These include crypto thefts from Bybit, Upbit, Radiant Capital, and DMM Bitcoin.
Blockchain researcher ZachXBT found that some decentralized finance (DeFi) protocols rely heavily on transactions from North Korea. In some cases, nearly 100% of monthly traffic came from DPRK-linked wallets.
Above all, Kraken’s exposure of the job applicant confirms the growing pattern of North Korean hacker groups targeting the crypto industry. The incident adds to the list of DPRK-linked cyber attacks that use employment and social engineering as entry points.
