South Korean authorities managed to recover 4.8 Bitcoins (BTC), linked to the hack of the Upbit exchange in 2019, local media outlet Yonhap News reported on November 21.
The incident, in which North Korean hackers stole 342,000 Ethereum (ETH), was one of the largest cyberattacks targeting a cryptocurrency platform. The stolen Ethereum, valued at $41.4 million in 2019, is now worth over $1 billion at current prices.
The investigation
The South Korean National Police investigation confirmed the involvement of North Korean hacker groups Lazarus and Andariel in the 2019 Upbit hack. These groups are known for large-scale cybercrime and stole more than $3 billion of cryptocurrency between 2017 and 2023.
The confirmation marks the first time South Korean police have officially linked a major computer hack to North Korean agents.
Police explained that the hackers laundered 57% of the stolen ETH by converting it into Bitcoin. The funds passed through three North Korea-linked exchanges and 51 global platforms.
After years of tracking blockchain activity and analyzing North Korean IP addresses, investigators identified patterns including the unique use of the North Korean language. Support from the US Federal Bureau of Investigation (FBI) also helped uncover the hackers’ operations.
The recovered Bitcoin, which was allocated to a Swiss exchange, was returned to Upbit.
Review on the rise
This development comes as Upbit is under surveillance by South Korea’s Financial Intelligence Unit (FIU) for KYC violations. The FIU reports that the exchange may be involved in up to 600,000 compliance violations.
South Korea’s Financial Services Commission (FSC) has also raised concerns about Upbit’s market dominance. The stock market accounts for nearly 20 percent of the 22 trillion won deposited in K Bank, raising questions about potential risks to the financial system.
According to data from CoinMarketCap, Upbit is the largest South Korean cryptocurrency trading platform, with a trading volume of around $6 billion.
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