Crypto Payments Fund Disrupts Revenge Attacks
South Korean police have uncovered a disturbing pattern of crimes in which cryptocurrency payments are used to fund what authorities call “private revenge” attacks. According to local reports, people are being hired through messaging apps Telegram to carry out intimidation tactics, including vandalizing front doors, leaving threatening messages and spreading human feces.
The payments would be between $337 and $675, or between 500,000 and 1,000,000 South Korean won in cryptocurrency. What makes these cases particularly concerning is that the arrested suspects claim they do not know who ultimately paid them. This creates a layer of anonymity that complicates police investigations.
Recent arrests and disturbing details
In the latest incidents, two individuals identified only as “Mr Lim” and “Mr K” were arrested and charged. The two men vandalized the front doors of residences and distributed defamatory leaflets. Some of these leaflets contained the chilling message: “I will not leave you alone.”
Mr Lim’s case was particularly troubling. The man, aged in his 20s, not only scattered food waste, but was also accused of spreading human waste in a nearby stairwell. These attacks took place in Suwon district, located outside Seoul. Police believe these individuals were acting under the direction of a private revenge organization operating on Telegram, and are currently trying to track down the people who hired them.
Crypto-enabled crimes model
These recent cases are being investigated for potential links to a vandalism incident on Dec. 7 that followed a similar pattern. In this previous case, three people also received payments in cryptocurrencies for dropping defamatory leaflets.
This is not the only crypto-related crime that has made headlines in South Korea recently. There was this bizarre case where someone allegedly mixed their business partner’s coffee with methomyl, a banned and toxic insecticide, after disputes over Bitcoin investments. This led to attempted murder charges.
Broader cryptographic security issues
South Korea’s crypto ecosystem appears to face multiple security challenges. Regulators have come under scrutiny for failing to detect a flaw in crypto exchange Bithumb’s internal system. This flaw led to up to 2,000 BTC (worth around $137 million at the time) being erroneously distributed to hundreds of customers instead of 2,000 won (around $1.35).
Bithumb detected the error within minutes and managed to recover most of the funds, but the incident raised serious questions about internal controls. The exchange had credited users with a staggering $43 billion in Bitcoin over the mistake.
There were other embarrassing incidents as well. Officers at the Gangnam Police Station lost access to $1.4 million worth of Bitcoin more than four years ago. And the country’s tax service publicly shared the seed phrase of three crypto wallets containing $4.8 million worth of tokens in a press release.
These incidents collectively paint a picture of a country grappling with the darker side of cryptocurrency adoption. While crypto offers legitimate financial opportunities, it is also exploited for criminal activity ranging from petty vandalism to serious financial errors by institutions that should know better.
I think what’s particularly concerning about these revenge attacks is how they mix traditional intimidation tactics with modern payment methods. The anonymity of cryptocurrency transactions makes it easier for people to hire others to carry out these disturbing acts without leaving an obvious financial trail. It reminds us that technological advances can be used for both good and evil.
