Upbit Returns 8.5 Billion Won to Victims of Voice Phishing Amid Crypto Fraud Surge

• Upbit refunds 8.5 billion won to 380 victims of voice phishing scams, highlighting fraud prevention efforts.  
• Real-time fraud detection systems and strong police collaboration play a key role in crypto security.  
• North Korea’s Lazarus Group linked to major crypto thefts, laundering stolen funds across global exchanges.

South Korea’s leading cryptocurrency exchange, Upbit, has refunded approximately 8.5 billion won ($6.07 million) to 380 users who fell victim to voice phishing scams. This signals a move in Upbit’s ongoing efforts to safeguard user funds amid an alarming rise in crypto-related fraud. 

The disbursement of the 8.5 billion won follows Upbit’s commitment to employing a real-time Fraud Detection System (FDS) to track and block suspicious transactions on its platform. With South Korean law enforcement’s support, Upbit could freeze and recover the stolen funds. 

In a previous case earlier this year, Upbit had already recovered 5 billion won for 246 victims, which set a precedent for the continued collaboration between the exchange and the police. On November 22, an additional 3.5 billion won was successfully returned to 134 victims. 

An official from Dunamu, the operator of Upbit, emphasized the importance of this joint effort, stating that the platform’s FDS, paired with the police’s investigative efforts, has been crucial in countering the surge in crypto scams.

The refund also comes against the backdrop of a long-standing issue of large-scale cybercrime linked to North Korean groups. Authorities have tied the infamous Lazarus Group, associated with the North Korean regime, to a 2019 hack that stole approximately 342,000 Ethereum (ETH) worth 1.4 trillion won at the time.

The hackers laundered the stolen funds across multiple exchanges globally, including those in the U.S. and China. Investigators revealed that a significant portion of the Ethereum was converted into Bitcoin at a discounted rate, often using platforms believed to be controlled by North Korea.

Despite extensive efforts to recover the stolen assets, only 4.8 Bitcoin were successfully retrieved, thanks to a Swiss exchange. This ongoing theft and money laundering underlines the rising concerns surrounding North Korea’s use of cryptocurrency theft to fund its activities.

Upbit’s proactive approach to fraud detection and its collaboration with law enforcement highlights the growing responsibility of crypto exchanges to protect users from cybercrime. The rising frequency of voice phishing and similar scams emphasizes the need for continuous vigilance and technological advancements in crypto security.

As global crypto activity expands, international cooperation between exchanges and law enforcement agencies will be essential in tackling the growing threat of cryptocurrency-related crimes. Upbit’s efforts provide a notable example of how such partnerships can effectively protect investors and curb fraud.