South Korea’s Upbit Exchange distributes 8.5 billion won to victims of a crypto fraud

Upbit reimbursed 380 victims of cryptocurrency forgeries 8.5 billion won through the use of sophisticated fraud detection and collaboration with the South Korean police.

Upbit, South Korea’s cryptocurrency exchange, has refunded 8.5 billion won ($6.07 million) to 380 victims of voice phishing schemes. This action underscores the success of the exchange’s collaboration with law enforcement in minimizing investor losses.

Ajunews reports that the recovery was facilitated on November 22 by the real-time Fraud Detection System (FDS) and a partnership with the Seoul Metropolitan Police Agency. Dunamu, Upbit’s operator, has been collaborating with the police to identify victims who were either oblivious or failed to disclose their losses following the breach. This most recent development is the result of their efforts.

This has been a significant milestone in Upbit’s ongoing endeavors to safeguard its users and reimburse the stolen funds to the victims of the 2019 breach.

The exchange’s spokesperson stated, “We are able to protect our users as crypto activity continues to increase, thanks to the Seoul Metropolitan Police’s investigation and Upbit’s FDS surveillance.”

In February of this year, Upbit reimbursed 5 billion won to 246 victims of comparable schemes. Additionally, 134 individuals received a refund of 3.5 billion won ($2.7 million) in November.

Upbit’s proactive measures are indicative of its dedication to preventing cryptocurrency frauds and underscore the significance of utilizing cutting-edge technology and law enforcement partnerships to guarantee investor protection.

Upbit’s initiatives to combat cryptocurrency schemes are part of a more comprehensive initiative to address the increasing threats within the cryptocurrency industry.

Lazarus Group’s breach continues to be one of the most substantial obstacles that the exchange has encountered. During the attack, hackers associated with North Korea’s Lazarus and Andariel groups seized 342,000 ETH, which is worth 1.4 trillion won.

According to the investigations, the stolen Ethereum was laundered through 51 exchanges in 13 countries, including the United States and China.

In the interim, South Korean regulators are conducting a comprehensive assessment of the partnership between K Bank and Upbit, the nation’s largest cryptocurrency exchange. K Bank, which exclusively offers fiat banking services to Upbit, recently withdrew its IPO application as a result of low demand and increasing apprehensions regarding its dependence on the exchange.

Reports indicated that Upbit held 17% of K Bank’s deposits, which prompted concerns regarding the bank’s financial viability in the event of a crypto market decline.

K Bank’s disclosure of the hazards associated with its dependence on Upbit to potential investors has been the subject of scrutiny by lawmakers and regulatory bodies, such as the Financial Supervisory Service (FSS). Lee Kang-il, a prominent lawmaker, criticized the situation as “abnormal” and expressed doubts about the bank’s capacity to operate independently without Upbit.

The examination emphasizes the obstacles that conventional financial institutions encounter when dealing with partnerships in the volatile cryptocurrency sector.

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