Paradigm security researcher Samczsun is warning that North Korea’s cyber operations are more extensive and sophisticated than commonly believed, extending beyond the infamous Lazarus Group.
His warning comes in the aftermath of the Bybit hack, which saw attackers compromise SafeWallet infrastructure instead of directly targeting the exchange itself. This shift in tactics highlights the growing sophistication of North Korea’s cyber strategy and raises concerns for the broader cryptocurrency ecosystem.
North Korea’s Expanding Cyber Warfare Network
For years, all North Korean-backed cybercrime has been attributed to Lazarus Group. However, Samczsun argues that this oversimplifies a far more complex network of state-sponsored threat actors.
According to him, North Korea’s hacking operations are run through the Reconnaissance General Bureau (RGB), which oversees multiple hacking units:
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Lazarus Group: Known for high-profile cyberattacks, including the 2014 Sony Pictures hack and the 2016 Bangladesh Bank heist
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APT38: Specializes in financial crimes, including bank fraud and cryptocurrency theft
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AppleJeus: Deploys malware disguised as trading apps to steal funds
These groups operate under the same government umbrella and help fund North Korea’s weapons programs while evading international sanctions.
Crypto as North Korea’s New Target
With its decentralized nature and lack of regulatory oversight, cryptocurrency has become a key revenue stream for North Korean hackers.
Their tactics include:
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Breaching exchanges and wallets
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Deploying malware disguised as crypto apps
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Using fake job offers to infiltrate crypto firms
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Supply chain attacks that compromise software providers
One example is the “Wagemole” operatives, North Korean IT workers who infiltrate legitimate tech companies. These individuals may appear as regular employees but use their access to steal funds or compromise internal systems.
This was seen in the Munchables exploit, where an employee linked to North Korea drained assets from the protocol.
Another example is the Radiant Capital breach, where North Korean attackers gained access through a compromised contractor using Telegram-based social engineering.
What This Means for the Crypto Industry
The Bybit hack shows that North Korean cyber threats are evolving beyond simple exchange breaches—now targeting infrastructure providers such as wallets, smart contract platforms, and security firms.
For the crypto industry, this highlights an urgent need for:
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Stronger security protocols
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Better intelligence sharing among firms
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Greater awareness of social engineering threats
As North Korea expands its cyber operations, the industry must adapt quickly to prevent future large-scale breaches.
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