Upbit Refunds 8.5 Billion to Victims

Upbit, South Korea's leading cryptocurrency exchange, has refunded 8.5 billion won ($6.07 million) to 380 victims of voice phishing, underscoring its commitment to securing user assets.

Leveraging its real-time Fraud Detection System (FDS) and collaborating with the Seoul Metropolitan Police, Dunamu, Upbit's operator, successfully blocked fraudulent transactions and recovered stolen funds.

This milestone follows an earlier success in February, when 5 billion won was returned to 246 victims.

On 22 November, Upbit restored an additional 3.5 billion won ($2.7 million) to 134 victims, highlighting its ongoing efforts to combat rising crypto fraud.

A Dunamu official praised the effectiveness of this collaboration, stating:

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

This cooperation highlights the power of integrating cutting-edge technology with law enforcement efforts to tackle the growing threat of crypto-related scams and fraud.

Upbit's proactive approach serves as a compelling model for other exchanges, demonstrating how collaboration can effectively safeguard investors from the escalating risks of cybercrime.

Exchange is Committed to Fighting Hacks

Upbit's refund comes as the exchange contends with the aftermath of the 2019 Lazarus Group hack, one of the largest crypto thefts in history.

South Korean authorities confirmed that Lazarus and its affiliate, Andariel, stole 342,000 ETH, valued at 1.4 trillion won.

Investigators traced the stolen Ethereum through 51 exchanges across 13 countries, including the US and China, with 57% of the stolen ETH exchanged for Bitcoin at a 2.5% discount, often via platforms linked to North Korea.

Despite extensive efforts, authorities recovered only 4.8 Bitcoin, which was returned from a Swiss exchange.

This breach underscores North Korea's increasing reliance on crypto theft to fund its operations.

Moreover, it highlights the urgent need for global cooperation in combating crypto-related crime, especially as exchanges like Upbit intensify their efforts to protect users.