A South Korean employee of a cryptocurrency exchange has been sentenced to four years in prison following a serious offense involving the sale of military secrets to North Korea in exchange for Bitcoin. The Supreme Court of South Korea delivered the verdict on December 28, highlighting the gravity of the crime and its potential threat to national security.
The court findings revealed that the individual, who worked at the exchange, was engaged in efforts to recruit a military officer, specifically a 30-year-old captain, to sell classified information to North Korean operatives. In return for facilitating this recruitment, the employee received a payment of $487,000 in Bitcoin. The officer, in turn, was promised a compensation of $33,500 in Bitcoin.
Communications regarding the sensitive exchange took place through the platform Telegram, where the exchange worker offered cryptocurrency in exchange for access to crucial military data. As part of the operation, he sent a watch-shaped hidden camera and a USB device intended to hack into the Korean Joint Command and Control System, a network used for intelligence sharing between the United States and South Korea. However, military authorities intercepted these devices before any sensitive information could be compromised.
The presiding judge emphasized the seriousness of the defendant”s actions, stating, “The defendant must have been aware that he was attempting to uncover military secrets for a country hostile to South Korea.” The implications of this crime could have jeopardized national security, and the defendant was motivated purely by financial gain.
In a related development, the captain involved in this case has also faced legal repercussions, receiving a ten-year prison sentence along with a fine of $35,000 for breaching the Military Secrets Protection Act.
This incident highlights the ongoing concerns regarding North Korea”s involvement in cryptocurrency-related crimes. On November 4, the U.S. Treasury Department imposed sanctions on several individuals and entities associated with North Korean cybercrime operations. Reports indicate that over the past three years, North Korea-affiliated cybercriminals have successfully stolen more than $3 billion in digital assets through various malicious tactics including malware and social engineering.
Among those sanctioned were individuals managing substantial amounts of cryptocurrency linked to ransomware attacks. This situation raises alarms about the financing of North Korea”s nuclear weapons and missile programs through stolen digital assets.
Additionally, in September 2024, the FBI issued warnings concerning North Korean hackers targeting U.S. cryptocurrency exchange-traded funds (ETFs) to steal digital assets, employing sophisticated social engineering techniques to breach firms connected to these financial products.
