South Korea Links North Korea to $41M Ethereum Heist from Upbit

South Korea has confirmed that North Korea orchestrated the 2019 theft of 342,000 Ethereum (ETH) tokens from Upbit, initially worth $41.5 million and now valued at 1.47 trillion Won.

The National Police Agency identified two North Korean hacking groups, Lazarus and Andariel, as responsible, using digital forensics and linguistic evidence to trace the attack. The U.S. FBI supported the investigation, linking the groups to North Korea’s Reconnaissance General Bureau.

The hackers converted 57% of the stolen Ethereum into Bitcoin through North Korean-controlled exchanges and laundered the rest via 51 foreign platforms. South Korean authorities recovered 4.8 Bitcoin in Switzerland after years of legal efforts, returning the funds to Upbit in 2024.

This heist underscores North Korea’s growing use of crypto theft to fund state activities and highlights vulnerabilities in the industry. Lax KYC compliance at Upbit, flagged in over 600,000 violations, and ongoing scrutiny by South Korea’s Fair Trade Commission further expose regulatory gaps.

The case reinforces the need for stronger cybersecurity and tighter anti-money laundering measures.