Court Imprisons Crypto Exchange Operator for Spying for North Korea with BTC

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A serving army commander provided the convict with military data in exchange for a $480,000 Bitcoin bribe.

A court has convicted a South Korean crypto exchange operator of “leaking military secrets” to North Korean hackers in exchange for Bitcoin (BTC) payments, and they have been sentenced to four years in prison.

According to Chosun Ilbo, a 42-year-old individual named Lee was convicted of violating the National Security Act.

In addition, Lee was prohibited from functioning in comparable capacities for an additional four years. According to the court, Lee was the “operator of a crypto exchange” when they “received 700 million won [$480,000]” in BTC.

A person who is believed to be a North Korean infiltrator was the source of the funds, according to the court.

“The hacker encouraged Lee to “approach an active-duty military officer” in order to “spill military secrets.”

“North Korea has an anti-state nature,” stated Presiding Judge Choi Kyung-seo at a branch of the Seoul Central District Court.

Choi also stated that Pyongyang “aspires to overthrow South Korea’s liberal democratic system.” The court provided an explanation:

“Lee was pursuing highly personal and economic objectives. But Lee did something wrong that could have put the whole country of South Korea in danger.”

According to the court, Lee approached a military lieutenant named Kim at the direction of a “North Korean infiltrator.”

In July 2021, the hacker, who went by the alias “Boris,” communicated with Lee via Telegram. Boris was purportedly seeking to “recruit active-duty officers who could provide military secrets.”

Boris was “a member of” the 110th Research Center, a state-run hacking group based in Pyongyang, according to the prosecutors.

In May 2023, the United States Treasury imposed sanctions on the organization. Seoul believes that the group was responsible for the 2009 DDoS attacks on “critical government agencies,” including the presidential offices and the National Assembly.

Kim received “a watch-shaped concealed camera” from Lee, according to the court, with the intention of “filming a variety of confidential military documents.”

Lee also “attempted to” assist North Korean hackers by transporting espionage software into a South Korean military base on a USB flash drive.

Lee was unable to deliver the USB device to Kim, as prosecutors claimed that law enforcement agencies intercepted him.

The prosecution service stated that it had traced the “source of the Bitcoin” Lee received “as compensation for his activities” in order to “conclude that Boris was a “North Korean agent” and a member of the 110th Research Centre.”

Last year, a court sentenced a group of loan lenders to prison for obtaining military credentials from soldiers as collateral. The soldiers desired to borrow money in order to invest in cryptocurrency.

Also Read: France could benefit from an increase in Bitcoin usage, according to Saylor of MicroStrategy

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