South Korea’s Upbit Refunds 8.5 Billion Won After Crypto Hack

Upbit, South Korea’s largest cryptocurrency exchange, disbursed approximately 8.5 billion won ($6.07 million) to 380 victims of voice phishing. Utilizing a real-time Fraud Detection System (FDS) and police collaboration, Dunamu, Upbit’s operator, blocked fraudulent transactions and recovered stolen funds. This milestone demonstrates the exchange’s commitment to protecting user assets amid rising crypto scams.

Upbit Returns Stolen Funds with Police Support

Crypto exchange Upbit recovered 8.5 billion won in frozen funds from voice phishing scams, Ajunews reported on November 22. Dunamu relies on its real-time Fraud Detection System (FDS) to detect and block suspicious transactions. Collaborating with the Seoul Metropolitan Police, the exchange successfully returned these funds to affected users.

In February, 5 billion won was recovered for 246 victims, marking a significant milestone in its efforts to combat fraud. On November 22, an additional 3.5 billion won ($2.7 million) was restored to 134 victims, emphasizing the exchange’s dedication to protecting user assets. A Dunamu official highlighted the success of this collaboration, stating

 “Thanks to the Seoul Metropolitan Police’s investigation and Upbit’s FDS monitoring, we continue to safeguard our users as crypto activity grows.”

This partnership underscores the effectiveness of combining advanced technology with law enforcement to address the rising threat of crypto-related scams and fraud. Upbit’s efforts set a strong example for other exchanges striving to protect investors from cybercrime.

Exchange Fight Against Hacks and North Korea’s Lazarus Group

The refund comes as Upbit grapples with the legacy of the 2019 Lazarus Group hack, one of the largest thefts in crypto history. South Korean police confirmed that Lazarus and its counterpart, Andariel, stole 342,000 ETH worth 1.4 trillion won.

Besides, Investigators found that hackers laundered the stolen Ethereum across 51 exchanges in 13 countries, including the U.S. and China. They noted that 57% of the ETH was exchanged for Bitcoin at a 2.5% discount, often through North Korea-controlled platforms.  Despite extensive efforts authorities recovered only 4.8 Bitcoin, which they returned to the exchange from a Swiss exchange.

Moreover, this incident highlights North Korea’s growing reliance on cryptocurrency theft to fund its activities. In addition, the exchange’s proactive measures against scams emphasize the increasing need for international cooperation to combat crypto crime.