30s Summary

South Korean investigators have confirmed that North Korean hackers stole $50 million from cryptocurrency platform, Upbit, in 2019; the currency had since appreciated in value to over $1 billion. This is the first time North Korea has been officially implicated in a crypto heist by South Korea. Around 60% of the stolen Ether is thought to have been sold on North Korean-controlled currency exchanges. Upbit is criticised for not properly verifying its customers, which could result in significant fines and difficulties in renewing its business licence.

Full Article

South Korea’s investigators have confirmed that a $50 million crypto heist in 2019 was down to North Korean hackers. The hack, which targeted the South Korean digital currency platform Upbit, saw the theft of 342,000 Ether – a popular cryptocurrency – from its ‘hot wallet’, a type of storage that’s always online and therefore less secure.

The stolen cyber cash was worth about $147 per Ether at the time. Fast forward two years, crypto prices have skyrocketed. The stolen cash amount could now be worth more than $1 billion!

This is a first – before now, South Korean investigators had never officially named North Korea in a cryptocurrency heist. They cracked the case by tracking where the money went and running digital footprints back to physical locations and individuals. They also analyzed traces of North Korean language.

Even though the investigators have now pinned down who was responsible, they’re staying tight-lipped on the specifics of how the hack was done. This is to stop copycats from pulling off similar heists. Closing the stable door after the horse has bolted? Maybe, but it’s probably still a wise move.

So far, investigators think nearly 60% of the stolen Ether was sold on currency exchanges thought to be under North Korean control. The rest were laundered by moving the funds from place to place through more than fifty other exchanges located elsewhere.

As if that wasn’t enough, Upbit’s also in hot water for apparently not doing enough to check who its customers are. An inspection in mid-November revealed that the platform might have let half to nearly a million rule-breakers onto its site. Their application reviews allegedly included blurred ID cards – not great, right?

This oversight could cost Upbit some serious cash in fines. It might also make renewing their business license trickier too.