North Korea Strikes Back: CZ Targeted After Exposing State-Backed Infiltration Tactics

Binance founder Changpeng “CZ” Zhao appears to have become the latest target in what experts describe as a state-backed retaliation campaign by North Korea’s notorious hacking unit, the Lazarus Group.

The attempted breach, revealed by CZ on X, came just weeks after he publicly warned the crypto community about North Korean operatives posing as job applicants to infiltrate blockchain companies. On his tweet, CZ shared a warning from Google saying that his account has been compromised by "government-backed attackers."

In mid-September, Zhao had sounded the alarm over a growing network of North Korean IT agents masquerading as developers and engineers to gain insider access to crypto projects. His warning, shared widely on social media, highlighted dozens of fake LinkedIn and GitHub profiles traced back to state-sponsored operatives — a revelation that embarrassed North Korea’s cyberintelligence wing.

This has made many wonder if this hacking attempt tied to “government-backed actors could be North Korea's way of striking back at the former Binance boss. Anndy Lian, the intergovernmental blockchain adviser, calls this incident no coincidence.

“I personally know that a government official who got a similar prompt as CZ, saying that hs account is detected with government-based hackers trying to steal his password.”

Pyongyang’s Digital War on Crypto

The Lazarus Group, long accused of funding North Korea’s weapons programs through cyber theft, is linked to some of the largest crypto exploits in history — including the $1.4 billion Bybit hack earlier this year. According to Chainalysis, Pyongyang-backed hackers looted $1.34 billion in 2024, a staggering 102% jump from the year prior.

But their methods are evolving. Beyond high-profile hacks, North Korea’s digital operatives are now embedding themselves inside crypto firms — posing as remote developers, consultants, or blockchain auditors. The Security Alliance (SEAL), an ethical hacker collective, has identified over 60 North Korean agents using fake digital identities to infiltrate crypto startups.

Recent incidents suggest these infiltration campaigns are already yielding results. In June, four operatives disguised as freelancers stole nearly $900,000 from multiple blockchain startups. Even Coinbase wasn’t spared — a May data breach exposed user information that could cost the exchange up to $400 million in restitution.

Zhao’s experience is a reminder that crypto leaders themselves are becoming prime targets in an escalating digital cold war. While the hack attempt failed, it underscores how state-backed cyber forces are no longer content with stealing funds — they are now after reputation, leverage, and influence in the crypto industry.

As experts call for stricter AI-driven threat detection and dual-wallet security systems, the line between financial hacking and geopolitical warfare continues to blur.

When Transparency Comes with a Price

CZ’s case may mark a new chapter in crypto geopolitics — one where whistleblowing against rogue states invites direct retaliation.

North Korea’s Lazarus Group has shown a growing obsession with both crypto capital and control of information. By exposing their playbook, CZ may have forced them into the spotlight — but in doing so, he’s also become their next trophy target.

If this pattern holds, transparency in crypto may soon come with a personal cost, as state actors move from shadowy heists to open acts of intimidation against industry leaders.