In a plot twist ripped from a spy thriller, a U.S. cryptocurrency exchange recently foiled an attempt by a North Korean hacker to infiltrate its ranks.
Kraken, a leading crypto platform, revealed how a routine job interview exposed a state-backed operative’s elaborate scheme to breach its systems. The incident shows the rising global threat of cyberattacks fueled by geopolitical tensions and how vigilance can turn hiring processes into intelligence operations.
A Routine Interview
In early 2025, Kraken’s recruitment team began vetting “Steven Smith,” an applicant for an engineering role. What seemed ordinary quickly unravelled. During a video interview, the candidate used a name mismatched with their application and intermittently switched vocal tones, hinting at real-time coaching.
Industry partners had already warned Kraken about North Korean hackers targeting crypto firms. A shared list of suspicious emails matched Smith’s, triggering alarms. Instead of rejecting him outright, Kraken’s security team devised a plan: advance the candidate to study his tactics.
“This wasn’t just about stopping one hacker,” said Kraken’s Chief Security Officer Nick Percoco. “We aimed to dismantle their entire playbook.”
Fake Identities and Stolen Credentials Exposed
Kraken’s investigators dug into Smith’s background, uncovering a web of forged identities. His resume linked to a GitHub profile tied to an email leaked in an old data breach. The team also found his primary ID had been altered using details stolen in a prior identity theft case.
Technical red flags piled up. Smith accessed interviews via a remote Mac desktop routed through a VPN, masking his location, a common tactic for hackers operating from sanctioned regions like North Korea. Furthermore, his network of aliases included profiles tied to sanctioned foreign agents.
“These operatives recycle stolen data to build believable covers,” a Kraken analyst noted. “But inconsistencies always slip through.”
The Trap: How Kraken Played Along
Kraken’s team advanced Smith through multiple interview rounds, embedding traps to test his legitimacy. Technical assessments included subtle verification tasks, while final interviews took a surreal turn.
In a casual chat with Percoco, Smith faced spontaneous requests: Hold up your government ID. Describe your neighbourhood. Recommend local restaurants. He stumbled, unable to name eateries in his claimed city or verify residency details.
“We turned the interview into a minefield,” Percoco said. “Every question had a purpose.”
The failed tests confirmed Kraken’s suspicions: Smith was a North Korean operative seeking insider access.
Also read: Michael Saylor’s $84 Billion Bitcoin Investment Strategy for 2025
North Korea’s Crypto Playbook
The incident mirrors Pyongyang’s broader strategy. Sanctions have pushed the regime to target crypto firms, stealing over $1.5 billion in 2024 alone. State-backed groups like Lazarus deploy hackers as “remote workers” to infiltrate companies, often using AI-generated photos, VPNs, and fake firms.
In April 2025, researchers uncovered a Lazarus subgroup running three U.S. based shell companies to distribute malware. Another operation, “Contagious Interview,” uses fake job listings to plant spies or malware.
“They’re not just hacking systems; they’re hacking trust,” said a cybersecurity expert. “Remote hiring makes crypto firms easy prey.”
Why Crypto Companies Are Prime Targets
Crypto’s borderless, pseudonymous nature attracts hackers, but lax hiring practices heighten risks. Many firms hire remote engineers without rigorous identity checks, allowing bad actors to exploit gaps.
Kraken’s blog post urges the industry to adopt stricter verification, including real-time ID tests and cross-referencing public data. The firm also advocates sharing threat intelligence, as partner alerts were pivotal in unmasking Smith.
“Assume every applicant could be an adversary,” Percoco warned. “Verify relentlessly.”
A Call for Vigilance
Kraken’s findings echo beyond crypto. State-sponsored hackers threaten sectors from healthcare to defence, but financial firms remain top targets due to their digital assets. The incident has sparked calls for international cooperation to curb North Korea’s cyber armies.
Following this, Kraken’s team continues dissecting the operation. Linked fake identities revealed some had already landed jobs elsewhere, highlighting the scale of the threat.
“This isn’t a Kraken-specific issue; it’s a wake-up call,” Percoco stressed. “Hackers aren’t just at your gates. They’re in your inbox.”
As geopolitical conflicts spill into cyberspace, companies must blend recruitment with counterintelligence. Kraken’s ordeal proves even routine processes can become battlegrounds. For hackers, the lesson is clear: today’s job market is riskier than ever.
Disclaimer: This content does not have journalistic/editorial involvement of Trade Brains Team. Readers are encouraged to conduct their own research before making any decisions.
