Bitcoin transactions with North Korean hacking groups—cryptocurrency employee sentenced to 4 years

The Supreme Court of South Korea upheld a four-year prison sentence for an employee of a cryptocurrency exchange involved in conspiring with North Korean cyber groups to sell military secrets for Bitcoin. This case highlights how digital assets can be exploited as elements threatening national security through serious hacking-related crimes.

Illegal Bitcoin Transactions—Execution of the Hacking Scheme

According to a report by PANews on December 30, the involved employee received approximately $487,000 worth of Bitcoin from North Korean hackers and, in return, provided about $33,500 worth of Bitcoin to a military officer. This financial transaction scheme is believed to be a method used by North Korea’s cyber groups to secure domestic collaborators to support hacking activities against South Korea’s defense systems.

Responsible Parties Charged with Military Secrets Theft

The employee was convicted of violating the National Security Act, with the court ruling that his actions posed a direct threat to the country’s strategic interests. Meanwhile, the involved captain had previously been sentenced to 10 years in prison and fined for violating the Military Secret Protection Act, indicating more severe charges.

Direct Threats to Defense Systems—Technical Hacking Attempts

Investigations revealed that North Korean hackers instructed the employee to embed a wristwatch-style hidden camera and USB hacking devices into military laptops. These devices aimed to enable remote access to the Korea-U.S. Combined Command and Control System but ultimately failed. This incident is not merely a personal crime but serves as a warning example of how international hacking criminal networks are being built through Bitcoin payments.