Fake developers are penetrating the global crypto workforce, targeting Web3 projects across Europe with alarming sophistication, Google says
From Sanctions to Smart Contracts: A Shifting Battlefield
According to a new report from Google’s Threat Intelligence Group (GTIG), North Korea-linked tech operatives have successfully infiltrated blockchain companies in the United Kingdom and across Europe, posing as freelance developers and remote contributors.
The findings highlight a growing geopolitical and cybersecurity threat vector for the Web3 ecosystem, especially as these operatives pivot to non-U.S. jurisdictions in response to intensified scrutiny and enforcement by American regulators.
“They’ve established a global ecosystem of fraudulent personas to enhance operational agility,” said GTIG adviser Jamie Collier in the April 2 report. “The discovery of facilitators in the UK suggests the rapid formation of a global infrastructure that empowers their continued operations.”
Deep Infiltration: From Solana Contracts to AI-Blockchain Hybrids
The report reveals that North Korean operatives have embedded themselves in projects ranging from basic web development to complex smart contract deployment, including work involving Solana and Anchor development environments.
GTIG also identified a North Korea-linked actor working on a blockchain-powered AI web application and a blockchain-based job marketplace—suggesting that these operatives are not merely targeting exchanges or wallets, but are increasingly drawn to deep infrastructure and middleware roles within the crypto space.
These workers typically present themselves as freelance remote developers, operating under fabricated digital identities, falsified resumes (including degrees from Belgrade University), and false residency claims in European countries such as Slovakia, Germany, and Portugal.
In one case, GTIG found a single North Korean agent managing at least 12 fake personas simultaneously across Europe.
More Than Code: Extortion Threats on the Rise
Beyond espionage and codebase access, GTIG reports a sharp rise in extortion attempts. Since late October 2024, dismissed North Korean developers have begun threatening to leak proprietary code and sensitive company data, or sell it to competitors, if employers don’t pay severance or silence money.
This marks a disturbing evolution from passive revenue generation to active cyber blackmail, potentially signaling increased pressure from the regime to maintain cash flow as U.S. sanctions and indictments squeeze traditional IT income streams.
“Recently fired IT workers threatened to release their former employers’ sensitive data,” Collier said. “This data included proprietary source code for internal projects.”
Not Just a U.S. Problem Anymore
While much of the early enforcement was U.S.-centric, including a January indictment by the U.S. Department of Justice targeting two North Korean nationals involved in schemes at 64 U.S. companies, the threat has now gone global.
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The U.S. Treasury’s OFAC has already sanctioned dozens of entities involved in remote IT work linked to North Korea.
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Now, European crypto startups, especially those lacking rigorous background checks or identity verification protocols, are at growing risk.
Compounding the issue, crypto project founders have reported increasingly sophisticated phishing and social engineering tactics, including fake Zoom calls and simulated job interviews intended to exfiltrate sensitive operational data.
The $500K a Month Network
In August, blockchain investigator ZachXBT alleged the existence of a North Korean developer network generating $500,000 per month, working not with shady DeFi experiments but with “established” and well-funded crypto projects.
This revenue is believed to flow directly into North Korea’s state-sponsored hacking apparatus, which has already been linked to multiple DeFi bridge exploits and exchange thefts exceeding billions in losses.
With Web3’s decentralized ethos and global hiring practices, these threat actors exploit trust-based development environments and jurisdictional blind spots in background checks.
What This Means for the Crypto Industry
The implications are far-reaching:
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Reputation risk: A project unknowingly hiring a North Korean operative could find itself entangled in international sanctions or facing criminal charges.
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IP theft: Proprietary smart contracts, tokenomics logic, and AI algorithms could be stolen or resold.
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National security: Collaborating with sanctioned entities—even unintentionally—can trigger massive legal liabilities under international finance laws.
Crypto firms, especially those based in Europe and Asia, must now adopt institution-grade compliance measures, including:
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Multi-factor identity verification
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Enhanced due diligence (EDD) for remote workers
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Audit trails for sensitive codebase contributions
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Proactive coordination with law enforcement and cybersecurity watchdogs
Final Thoughts: A Wake-Up Call for Web3
The crypto industry often prides itself on openness, global collaboration, and merit-based contribution. But that same openness now presents a clear and present danger.
As North Korea’s operatives become more embedded and more aggressive, blockchain projects must reframe how they view “permissionless participation”—especially when it comes to internal access and developer trust.
Cyber threats are no longer just phishing emails or bridge exploits—they are Zoom interviews, GitHub commits, and code reviews. And they might already be inside your repo.
The choice facing the industry now is stark: prioritize security and verification—or risk becoming the next unwitting proxy for geopolitical cyberwarfare.
