Originally published on: November 21, 2024
South Korean authorities have officially confirmed that North Korean hackers were behind the $50 million cryptocurrency hack of Upbit in 2019.
The National Office of Investigation in South Korea identified North Korean hacker groups Lazarus and Andariel as the culprits behind the theft of 342,000 Ether, valued at $3,727.05 each at the time of the hack.
Upbit, a prominent cryptocurrency exchange based in South Korea, reported the theft from its hot wallet on Nov. 27, 2019. The stolen Ether was worth approximately $147 per coin, resulting in a total loss of about $50 million.
Since the time of the hack, the value of Ether has surged significantly, along with Bitcoin, with the stolen amount now exceeding $1 billion.
This revelation marks the first time that a South Korean investigative agency has officially confirmed North Korean involvement in a cryptocurrency hack. The agency traced the crypto flows, analyzed IP addresses, and utilized information from the United States FBI to confirm North Korea’s participation.
While details of the hacking methods have been withheld to prevent further attacks, it is believed that the hackers have sold a significant portion of the stolen Ether on exchanges reportedly operated by North Koreans, with the rest being laundered through overseas exchanges.
In addition to the hack, Upbit is facing scrutiny from the Financial Intelligence Unit of South Korea’s Financial Services Commission for potential Know Your Customer violations. The exchange is accused of accepting blurred identification cards, raising concerns about user identification.
These violations could result in fines of up to $71,500 per case and may impact the renewal of Upbit’s business license.
Stay informed about the latest developments in the world of cryptocurrency and finance. Subscribe to the Finance Redefined newsletter for weekly insights, analysis, and opportunities to guide your financial decisions. Don’t miss out on important updates – subscribe now!
