Bitcoin Betrayal: How a Crypto Worker Sold Secrets to North Korea

A South Korean crypto exchange worker has been sentenced to four years in prison and a four-year ban from the financial sector after attempting to sell military secrets to North Korea in exchange for Bitcoin. The Supreme Court handed down the verdict, highlighting the severity of the crime.

A Complex Web of Espionage

The worker was not acting alone. North Korean hackers orchestrated the operation, paying the worker $487,000 in Bitcoin to recruit a 30-year-old army captain. The captain, identified as Kim, was offered $33,500 in Bitcoin for classified military data.

The worker used Telegram to communicate with the officer, promising cryptocurrency in exchange for sensitive information. The plot escalated when the worker sent a watch with a hidden camera and a USB hacking device to the captain. These gadgets were designed to steal data from the Korean Joint Command and Control System, a platform used by the U.S. and South Korea to share intelligence. Fortunately, military police intercepted the devices before any damage was done.

Severe Consequences for Both Parties

The judge emphasized that the worker knowingly dealt with a hostile country, putting the entire nation at risk for personal gain. The captain received a harsher sentence—10 years in prison and a $35,000 fine for violating the Military Secrets Protection Act.

North Korea's Cryptocurrency Theft Ring

This case is not an isolated incident. North Korea has been actively stealing cryptocurrency, amassing over $3 billion in the past three years. They employ malware, ransomware, and social engineering to target banks, exchanges, and other platforms. The U.S. Treasury Department recently sanctioned eight individuals and two entities linked to these cybercrime operations. The stolen funds help finance Pyongyang’s nuclear weapons and missile programs.

FBI Warning on North Korean Hackers

In September 2024, the FBI issued a warning about North Korean hackers targeting U.S. cryptocurrency exchange-traded funds (ETFs). These hackers use sophisticated social engineering techniques to infiltrate companies linked to these financial products. The digital world remains a battleground, with the stakes higher than ever.