Cryptocurrency in Crisis: How North Korean Hackers Stole 342,000 ETH

Tensions between countries are growing more frequent in today's world. This is caused by various factors, including political disagreements, economic disputes, and technological challenges. One pressing issue in this context is cryptocurrency regulation. Accusations of cyberattacks, asset thefts, and other incidents involving Web3 technology are becoming increasingly common. Today, our team at Coinmooner will discuss a high-profile case that has captured the global community's attention.

South Korea’s National Investigation Bureau officially announced that North Korean hackers, specifically the Lazarus Group and Andariel, were behind the hack of the local cryptocurrency exchange Upbit. This incident occurred on November 27, 2019. At the time of the cyberattack, Ethereum (ETH) was trading at approximately $147 per coin. During the attack, hackers managed to steal 342,000 ETH, worth $50 million. Today, the value of these stolen assets has exceeded $1 billion.

What makes this case particularly notable is that it marks the first time South Korean law enforcement officially confirmed the involvement of North Korean hackers in the breach of a local exchange. Investigators traced the flow of cryptocurrency and analyzed IP addresses to establish their involvement. They also relied on data provided by the U.S. Federal Bureau of Investigation (FBI) and linguistic evidence, including using the North Korean dialect. However, the police chose not to disclose the specific methods used in the attack to prevent similar incidents in the future.

Hackers, Stolen ETH, and Linguistic Evidence: Tracing the Upbit Cyber Heist

According to available information, the hackers sold around 57% of the stolen assets and laundered the remaining funds through several foreign cryptocurrency platforms. This case is just one part of North Korea's larger strategy to engage in illegal funding and apply economic pressure through cyberspace.

In recent days, Upbit’s name has reappeared frequently in South Korean media. This is due to an investigation launched by the country’s authorities. The Financial Services Commission has uncovered more than 600,000 violations in Upbit’s KYC (Know Your Customer) verification system. As a result, the exchange faces a fine of $71,500 for each violation, along with potential difficulties in renewing its operating license.

Coinmooner will closely follow the developments in this case and promptly inform our readers of any new details. We also want to remind everyone that in the Web3 industry, using the most advanced security measures to protect assets and reduce risks is crucial.