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South Korean authorities have identified North Korean hacker groups Lazarus and Andariel as the perpetrators behind the notorious $50 million Upbit hack from 2019.
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The stolen cryptocurrency, primarily consisting of Ether (ETH), has appreciated significantly since the attack, now with a value exceeding $1 billion.
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According to a recent report by South Korea’s Yonhap News, investigators utilized crypto tracking techniques and forensic analysis to confirm the involvement of these hacking groups.
South Korea confirms the involvement of North Korean hackers in the $50 million Upbit exchange hack, with stolen crypto’s current worth over $1 billion.
North Korean Police Confirm Hack Perpetrators After 5 Years
In a significant breakthrough, South Korean authorities have publicly acknowledged the roles of Lazarus and Andariel in the Upbit hack, bringing to light the complex web of international cybercrime associated with North Korea. This confirmation, reported by Yonhap News, marks a pivotal moment in cybercrime investigation as it represents the first official recognition of a North Korean link to a cryptocurrency hack.
According to the investigative findings, South Korean officials tracked illicit crypto flows and IP addresses, employing advanced analytical techniques and collaborating with resources from the FBI. This comprehensive probe revealed that while they confirmed North Korea’s involvement, several details concerning the hackers’ methods were withheld to avert encouraging similar attacks by other malicious actors.
Since the hack, it is estimated that the perpetrators have liquidated approximately 57% of the stolen Ether on various exchanges, which are believed to be secretly operated by North Koreans. The remaining portion of the stolen cryptocurrency has reportedly been laundered through a network of 51 overseas exchanges.
The Economic Impact Of The Hack
The Upbit hack doesn’t merely represent a technological breach; it underscores the broader implications of cybersecurity vulnerabilities within the cryptocurrency landscape. The stolen Ether, originally valued at around $147 per coin when the hack occurred, has since surged in value. With the cryptocurrency market experiencing significant volatility and growth, the current estimated value exceeding $1 billion equates to both a staggering loss for investors and a potentially substantial resource for North Korea’s continued cyber operations.
South Korea Probes Upbit for KYC Violations
As authorities investigate the Upbit hack, they are also scrutinizing the exchange for potential violations of Know Your Customer (KYC) regulations. In a recent assessment conducted by the Financial Intelligence Unit of the Financial Services Commission, around 500,000 to 600,000 potential KYC violations were uncovered. These alleged breaches surfaced during the review for Upbit’s business license renewal.
The review pointed out that Upbit had accepted blurred identification cards, raising concerns about user verification and regulatory compliance. Such practices can expose cryptocurrency exchanges to increased risks of illicit activity, including terrorism financing and money laundering.
The repercussions for Upbit could be severe, with potential fines reaching up to $71,500 per violation. This scrutiny not only impacts Upbit’s immediate operations but also threatens the renewal of its business license, further complicating its ability to operate within the South Korean market.
Future of Cryptocurrency Security in South Korea
The recent revelations have ignited discussions surrounding the security measures employed by cryptocurrency exchanges in South Korea. Following this hack and the identified KYC violations, there is a heightened push for stricter regulations and enhanced security protocols. The government is anticipated to implement new rules aimed at increasing transparency and accountability within the crypto sector, alongside improved cooperation with international law enforcement agencies to better trace illicit crypto activities.
Conclusion
In conclusion, South Korea’s latest findings regarding the Upbit hack highlight the ongoing complexities of cybersecurity in the cryptocurrency realm. As the investigation unfolds, exchanges like Upbit must navigate not only regulatory compliance but also the repercussions of being targeted by cybercriminals. The increased value of stolen assets underscores the critical need for robust security measures and regulatory oversight to safeguard investors and the integrity of the cryptocurrency market.
