Upbit continues to address the fallout from the 2019 Lazarus Group attack, where 342,000 ETH (1.4 trillion won) were stolen.
Upbit, the largest cryptocurrency exchange in South Korea, distributed around 8.5 billion won, which is equivalent to $6.07 million, to 380 individuals who had been victims of voice phishing.
Dunamu, the operator of Upbit, utilized a real-time Fraud Detection System (FDS) and law enforcement’s participation to prevent fraudulent transactions and retrieve stolen cash. In light of the growing number of cryptocurrency scams, this milestone highlights the exchange’s dedication to safeguarding the investments of its users.
Upbit Returns Stolen Funds with Police Support
On November 22, Ajunews reported that the cryptocurrency exchange Upbit successfully recovered 8.5 billion won worth of locked cash due to voice phishing scams. For the purpose of identifying and preventing potentially fraudulent transactions, Dunamu depends on its real-time Fraud Detection System (FDS).
By collaborating with the Seoul Metropolitan Police, the exchange successfully returned the affected users’ cash. In February, the exchange achieved a significant milestone by recovering $5 billion for 246 victims.
On November 22, the exchange returned an extra 3.5 billion won, equivalent to $2.7 million, to 134 victims, demonstrating its commitment to protecting its users’ assets. A Dunamu official underscored the success of this relationship, stating that this alliance demonstrates how effective it is to combine cutting-edge technology with law enforcement in order to combat the growing danger of scams and frauds related to cryptocurrency.
Exchange Fight Against Hacks and North Korea’s Lazarus Group
The actions taken by Upbit serve as a powerful model for other exchanges that are working to safeguard investors from the dangers of cybercrime.The return comes at a time when Upbit is struggling to deal with the aftermath of the 2019 Lazarus Group attack, which was one of the most costly thefts in the history of cryptocurrency.
Lazarus and its counterpart, Andariel, were responsible for the theft of 342,000 ETH, which is equivalent to 1.4 trillion won, according to the South Korean authorities. Furthermore, investigators discovered that hackers stole Ethereum and then laundered it across 51 exchanges located in 13 different countries, including the United States of America and China.
They observed that North Korea-controlled platforms typically traded 57% of the ETH for Bitcoin at a 2.5% discount. Although the authorities made a significant number of attempts, they were only able to get 4.8 bitcoins, which they then brought back to the exchange from a Swiss exchange.
This episode also sheds light on the fact that North Korea is becoming increasingly dependent on the theft of cryptocurrencies in order to finance its activities. As an additional point of interest, the preemptive actions taken by the exchange to combat scams highlight the growing necessity of international cooperation in the fight against cryptocurrency crime.
