Upbit Refunds Millions After Crypto Hack

Upbit refunded 8.5 billion won to 380 voice phishing victims, as authorities expose North Korea’s involvement in previous hacks.

Upbit, the biggest cryptocurrency exchange in South Korea, paid out almost 8.5 billion won ($6.07 million) to 380 voice phishing victims.

Dunamu, Upbit’s operator, stopped fraudulent transactions and recovered stolen money by working with the authorities and a real-time Fraud Detection System (FDS).

This accomplishment shows the exchange’s dedication to safeguarding customer funds in the face of growing cryptocurrency fraud.

With Police Assistance, Upbit Returns Stolen Funds

On November 22, Ajunews claimed that cryptocurrency exchange Upbit had recovered 8.5 billion won in frozen cash via voice phishing attacks.

To identify and stop questionable transactions, Dunamu depends on its real-time Fraud Detection System (FDS). The exchange was able to successfully restore this cash to the impacted individuals by working with the Seoul Metropolitan Police.

The recovery of 5 billion won for 246 victims in February was a major turning point in its fight against fraud.

A further 3.5 billion won ($2.7 million) was returned to 134 victims on November 22, demonstrating the exchange’s commitment to safeguarding user assets.

An official from Dunamu emphasized the success of this partnership by saying:

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

This collaboration demonstrates how well cutting-edge technology and law enforcement can work together to combat the growing threat of fraud and scams involving cryptocurrency.

Upbit’s initiatives serve as a powerful model for other exchanges looking to safeguard investors from online fraud.

Exchange Fights North Korea’s Lazarus Group

The reimbursement comes as Upbit struggles to deal with the fallout from the Lazarus Group attack in 2019, which was one of the biggest thefts in the history of cryptocurrency.

Lazarus and its equivalent, Andariel, stole 342,000 ETH worth 1.4 trillion won, according to South Korean investigators.

Additionally, investigators discovered that hackers used 51 exchanges in 13 countries, including China and the United States, to launder the stolen Ethereum.

They observed that frequently via platforms under North Korean control, 57% of the ETH was converted to Bitcoin at a 2.5% discount.

Authorities returned the 4.8 Bitcoin they had collected from a Swiss exchange to the exchange despite their best efforts.

This event also demonstrates how North Korea is increasingly depending on cryptocurrency theft to finance its operations.

Furthermore, the exchange’s proactive anti-scam initiatives highlight the growing necessity of global collaboration in the fight against cybercrime.