South Korean Police Recover Bitcoin Linked to 2019 Upbit Hack
The Investigation Unfolds
The National Police Agency of South Korea has confirmed the involvement of North Korean hacker groups Lazarus and Andariel in the 2019 Upbit hack. These groups are well-known for their cybercriminal activities, having stolen more than $3 billion in cryptocurrency from 2017 to 2023. This marks the first official confirmation by South Korean police linking North Korean operatives to a major cryptocurrency exchange hack.
Upbit Under Scrutiny
Amidst these developments, Upbit is facing scrutiny from South Korea’s Financial Intelligence Unit (FIU) over potential KYC-related violations. The FIU has indicated that the exchange could be implicated in up to 600,000 compliance breaches. At the same time, the Financial Services Commission (FSC) of South Korea has raised concerns regarding Upbit’s market dominance, particularly since the exchange holds nearly 20% of the 22 trillion won deposited in K Bank, which, in turn, poses potential risks to the financial system.
Nevertheless, Upbit remains the largest South Korean crypto trading platform, with a trading volume of around $6 billion, as per data from CoinMarketCap. Significantly, this underscores its continued prominence despite these regulatory challenges and highlights its resilience in maintaining a leading position in the market.
This case not only underscores the ongoing risks posed by cybercriminals in the blockchain space but also highlights the importance of robust security measures and international cooperation in tackling these threats. For more insights into the evolving landscape of blockchain and cryptocurrency, explore our articles on blockchain’s role in the supply chain and the intersection of Web3 and the gig economy.
