ZachXBT, the most famous investigator in the crypto ecosystem, claimed to have discovered a network of North Korean developers who worked on dozens of cryptocurrency projects and assets of all kinds. In total, they are said to be illegally earning nearly $500,000 each month thanks to their various tricks.
North Korean Developer Network Makes $500,000 a Month From 'Crypto Projects'
In recent weeks, there have been several signs that a sophisticated network of North Korean developers is making hundreds of thousands of dollars each month from cryptocurrencies. Famous detective ZachXBT investigated and found evidence to confirm the existence of such a network..
It all started when the investigator was contacted following a theft suffered by an American organization. The latter, which complained to the United States Treasury Department, was robbed of $1.3 million because of ” from the dissemination of malicious code “.
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Quickly, Suspicions are being raised that North Korea-based developers impersonated the company, posing as Westerners.To launder the money they managed to steal, the North Korean developers initiated a sequence of transactions allowing them to transfer their loot to a stolen wallet.
By following multiple payment addresses, ZachXBT discovered that a group of Asian developers received $375,000 in the past month. It also highlighted other transactions completed between July 2023 and June 2024. for a total amount of 5.5 million dollars.
Using this information, ZachXBT was able to deduce that the North Korean developers who worked for the United States Treasury Department were part of an extended network of 21 developers, working on more than 25 cryptocurrency-related projects.
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By using false identities, developers gained the trust of the companies they worked for.
Quickly, The detective managed to list the various developers of the networkidentifying their fake names, their fake locations, the payment addresses they used, and even their email addresses.
The list of 21 developers part of the North Korea-based network
As his investigation progressed, ZachXBT was also able to establish the links between the various developers and their hierarchy. Little by little, he built the network flowchart from transaction addressesall owned by people linked to North Korea, and behind several cyberattacks.
The dense network of North Korean developers discovered by ZachXBT
Among them we find Sim Hyon Sop. The latter has already been sanctioned by the Office of Foreign Assets Control (OFAC)the U.S. financial watchdog, for coordinating financial transfers that supported North Korea's weapons programs.
Addresses belonging to Sang Man Kim were also found, also sanctioned by OFAC, and closely linked to several acts of cybercrime in which North Korea is involved.
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ZachXBT also discovered that several developers came from this network were regularly recommended by recruitment companies specializing in the IT world to work on projects related to cryptocurrenciesThis is how the network gains access to the information that allows them to commit their crimes.
Between 2017 and 2023, North Korea is suspected of stealing more than $3 billion in cryptocurrencies, including nearly $1.7 billion in 2022 alone.
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Surprised by the rise of crypto-assets in the late 2010s, I started to closely follow this sector that fascinates me to the highest degree. When I am not in football stadiums, rugby or handball halls, I work on writing relevant articles about cryptocurrencies and more broadly, Web3.
Zacharie Tazrout
38 articles
