Just-In: Crypto Exchange Head Accused Of Leaking Secrets To North Korea

Ambar Warrick
April 28, 2022
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CoinGape has covered the cryptocurrency industry since 2017, aiming to provide informative insights to our readers. Our journal analysts bring years of experience in market analysis and blockchain technology to ensure factual accuracy and balanced reporting. By following our Editorial Policy, our writers verify every source, fact-check each story, rely on reputable sources, and attribute quotes and media correctly. We also follow a rigorous Review Methodology when evaluating exchanges and tools. From emerging blockchain projects and coin launches to industry events and technical developments, we cover all facets of the digital asset space with unwavering commitment to timely, relevant information.
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The head of a South Korean crypto exchange was reportedly indicted for allegedly leaking military secrets to a presumed North Korean agent.

Officials have so far declined to reveal the identity of the accused, only releasing his surname, Lee. The individual allegedly colluded with a military officer and leaked sensitive information to a North Korean agent.

The move comes amid growing tensions between the two Koreas, over Pyongyang’s stepping up of its nuclear testing. The country has also ramped up its anti-U.S. rhetoric, and carried out a series of missile tests this year.

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Exchange head bribed military officer in crypto

According to South Korean news agency Yonhap, Lee approached a military captain last year and promised to compensate the officer in crypto if he provided confidential information. Lee then passed on the information to the supposed agent.

The officer provided Lee with login information for a military platform, for which they were compensated with crypto worth over 700 million won ($551,000).

Both Lee and the captain were indicted under the Nation Security Act. Authorities are currently searching for the presumed North Korean spy, Yonhap reported. It is also unclear what more information was leaked.

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North Korean hackers target crypto firms

An infamous North Korean hacking group, called Lazarus, was linked to a record $620 million crypto heist earlier this year. The funds were stolen from popular play-to-earn game Axie Infinity.

The group has reportedly looted over $2 billion worth of cryptocurrency since 2017.

U.S. authorities recently warned cryptocurrency firms that the group was looking to launch more attacks, either through phishing or even malicious crypto applications.

North Korean groups have also been using malware to steal cryptocurrency.

These actors will likely continue exploiting vulnerabilities of cryptocurrency technology firms, gaming companies, and exchanges to generate and launder funds to support the North Korean regime.

The U.S. government said in a recent press release.

 

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Investment disclaimer: The content reflects the author’s personal views and current market conditions. Please conduct your own research before investing in cryptocurrencies, as neither the author nor the publication is responsible for any financial losses.
Ad Disclosure: This site may feature sponsored content and affiliate links. All advertisements are clearly labeled, and ad partners have no influence over our editorial content.

Why Trust CoinGape

CoinGape has covered the cryptocurrency industry since 2017, aiming to provide informative insights Read more…to our readers. Our journal analysts bring years of experience in market analysis and blockchain technology to ensure factual accuracy and balanced reporting. By following our Editorial Policy, our writers verify every source, fact-check each story, rely on reputable sources, and attribute quotes and media correctly. We also follow a rigorous Review Methodology when evaluating exchanges and tools. From emerging blockchain projects and coin launches to industry events and technical developments, we cover all facets of the digital asset space with unwavering commitment to timely, relevant information.

About Author
About Author
With more than five years of experience covering global financial markets, Ambar intends to leverage this knowledge towards the rapidly expanding world of crypto and DeFi. His interest lies chiefly in finding how geopolitical developments can impact crypto markets, and what that could mean for your bitcoin holdings. When he isn't trawling through the web for the latest breaking news, you can find him playing videogames or watching Seinfeld reruns. You can reach him at [email protected]
Investment disclaimer: The content reflects the author’s personal views and current market conditions. Please conduct your own research before investing in cryptocurrencies, as neither the author nor the publication is responsible for any financial losses.
Ad Disclosure: This site may feature sponsored content and affiliate links. All advertisements are clearly labeled, and ad partners have no influence over our editorial content.