South Korea Accuses North Korean Hackers of Stealing $50M in Crypto From Upbit
South Korean authorities have accused North Korean hackers of attacking the Upbit crypto exchange in 2019 and making away with $50 million in crypto. According to the National Office of Investigation (NOI), notorious hacker organizations Andariel and Lazaraus were behind the hack, in which about 342,000 ETH were stolen.
Stolen Crypto Value Exceeds $1 Billion
On November 27th, 2019, South Korean crypto exchange Upbit reported that attackers had stolen the ETH tokens from its hot wallets. At the time, ETH was trading at $147. With the recent gains realized by the coin, priced at $3,330 at press time, the value of the stolen tokens has risen to over $1 billion.
Meanwhile, South Korean-based media house Yonhap News says this is the first time the country’s authorities have linked North Korea to a crypto hack. It reveals that NOI confirmed North Korean hackers’ involvement in the Upbit attack after tracking IP addresses and crypto flows.
While South Korea has confirmed the culprits behind the Upbit hack, it hasn’t revealed the hacking methods used to prevent possible copycat attacks.
Where is the Stolen ETH?
As of November 22nd, the hackers are said to have cashed out roughly 56% of the stolen crypto on trading platforms allegedly run by North Korean companies. The remaining tokens have been distributed to over 50 foreign exchanges.
Besides Upbit, North Korean hack groups have previously attacked other crypto projects. For example, Lazarus hacked the Atomic Wallet, making away with $35 million worth of crypto in 2023.
South Korean Financial Watchdog Accuses Upbit of Violating KYC Rules
The latest development comes a few days after the South Korea Financial Services Commission (FSC) reported that it had discovered over 550,000 potential violations of Know Your Customer (KYC) policies on the Upbit exchange.
The FSC said it spotted the breaches as it reviewed the trading platform’s business license renewal. Upbit allegedly allowed users with blurred identification cards to use the exchange, making it difficult for authorities to identify them. If FSC decides to level charges, Upbit could end up paying up to $70,000 per violation.
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