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South Korean Crypto CEO Jailed for Selling Military Secrets to North Korea

South Korean Crypto CEO Jailed for Selling Military Secrets to North Korea

A South Korean crypto exchange CEO is headed to prison for four years after being found guilty of espionage. The CEO participated in a scheme to disclose military secrets to a North Korean agent. In return, he received crypto payments, including Bitcoin, totaling around 700 million won ($600,000).

The convicted CEO collaborated with a North Korean agent and an active-duty South Korean officer. The trio attempted to hack into the South Korean military’s Joint Command and Control System (KJCCS).

Although their hacking attempt failed, they leaked sensitive military information using a burner phone. This breach highlights the dangerous intersection of digital currency and international espionage.

The CEO first met the North Korean agent nine years ago in a cryptocurrency community. The agent lured the CEO into the scheme by offering payments in cryptocurrency on two separate occasions between February and April 2021.

Related: South Korea Crypto Regulation: New Bill Targets Money Laundering

North Korea’s Cyber Threats and Crypto Hacking

Just days before this sentencing, a joint statement from the United States, Japan, and South Korea formally linked North Korea’s Lazarus Group to multiple cyberattacks. These attacks targeted global crypto platforms.

These attacks have raised alarms about the state-backed group’s growing influence in cybercrime. Lazarus seems to be particularly focused on crypto exchanges.

One of the cyberattacks linked to Lazarus was the breach of WazirX in July 2024. This hack resulted in a loss of $235 million. The group has also been involved in attacks on platforms such as Upbit, Radiant Capital, and Bahrain’s Rain Management, with losses totaling millions of dollars.

North Korea’s Crypto Heists and Global Impact

According to a United Nations report, North Korea-linked malware groups have acquired over $3 billion in crypto assets between 2017 and 2023.

However, the country is reportedly using the money earned from these hacks to strengthen its economy. Some projections state that over 50% of North Korea’s foreign currency earnings in 2024 came from illicit activities.

Source

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