In the face of rising prices and renewed interest in the cryptocurrency market, North Korean hackers are intensifying their illicit activities, specifically targeting exchanges like Coinbase. CEO Brian Armstrong revealed that the company has had to adapt its policies significantly to counteract these threats from North Korea.
Coinbase CEO Warns Of North Korean IT Workers
Armstrong highlighted the alarming trend of North Korean information technology (IT) workers attempting to exploit Coinbase’s remote work policy to gain employment and access sensitive systems within the exchange.
He noted that the threat posed by these hackers is escalating, reflecting a continuous influx of new talent emerging from North Korea. “It feels like there’s 500 new people graduating every quarter from some kind of school they have,” Armstrong remarked.
In response to these security concerns, Coinbase has mandated that all employees travel to the United States for in-person orientation. Additionally, anyone with access to sensitive information must be a US citizen and undergo fingerprinting.
The FBI recently issued an updated warning regarding North Korean IT workers who engage with private companies to generate illicit revenue for the regime.
These workers reportedly collaborate with both “witting and unwitting” accomplices in the US, facilitating their activities by reshipping company laptops, attending virtual interviews on behalf of North Korean candidates, and even setting up front businesses.
New Facility In Charlotte And Stricter Employee Controls
To further secure its hiring processes, the crypto exchange has implemented measures such as requiring prospective employees to activate their cameras during interviews. This step is intended to ensure that candidates are genuine and not being coached or manipulated by external forces.
Armstrong emphasized that the need for rigorous security protocols has led Coinbase to enhance its customer support operations, particularly with the establishment of a new facility in Charlotte, North Carolina.
Armstrong also pointed out the increasing importance of verifying physical presence in an era characterized by advancements in artificial intelligence (AI) and deepfake technology. He noted that as the stakes in cybersecurity rise, certain aspects of remote work may need to be reevaluated.
In addition to external threats, Coinbase is actively working to mitigate internal risks. Armstrong mentioned that malicious actors have offered significant bribes to customer service agents in exchange for sensitive information.
To combat this, Coinbase has implemented strict controls over the information its employees can access and has made it clear that any violations will have serious consequences.
Armstrong stated, “When we catch people, we don’t walk them out the door; they go to jail.” He reiterated that no amount of money is worth the risk of losing one’s freedom.
Featured image from DALL-E, chart from TradingView.com