Korean CEX employee sentenced to four years for Bitcoin bribe to military officers, previously assisted North Korean hackers in subversion

According to PANews, the Supreme Court of South Korea recently upheld the original verdict, confirming a four-year prison sentence for an employee of a cryptocurrency exchange (CEX). The CEX employee was convicted of assisting a North Korean hacker organization in attempting to persuade a Korean Army captain to steal military secrets, violating the National Security Act. This case once again exposes the risks of illegal trading and misuse of crypto assets, as well as highlights the serious lack of security awareness and legal bottom line among some CEX personnel.

CEX Employee Accepts Large Amounts of Bitcoin as “Inside Agent”

The CEX employee received $487,000 worth of Bitcoin from North Korean hackers as compensation and was subsequently instructed to pay $33,500 worth of Bitcoin to the involved military officer. The anonymity and liquidity of crypto assets facilitate such illegal transactions and make fund tracing difficult. As a hub for cryptocurrency circulation, CEXs lacking necessary Know Your Customer (KYC) and Anti-Money Laundering (AML) mechanisms can easily become channels for illegal funds. The negligence of the CEX employee in this case reflects potential loopholes in internal management systems within the industry.

North Korean Hacker Group Orchestrates Espionage to Steal Military Secrets

Investigations show that the North Korean hacker group was in a commanding position throughout the incident, instructing the CEX employee to provide a “watch-shaped hidden camera” and USB hacking devices for implanting in military laptops. The real goal of these devices was to remotely infiltrate the Korea-U.S. Combined Command and Control System to obtain joint defense intelligence. Fortunately, this dangerous attempt was ultimately thwarted. The involved military officer had previously been sentenced to ten years in prison and fined for violating the Military Secret Protection Act.

Court Rules Violation of National Security Law, Urgent Need to Strengthen CEX Regulation

The South Korean Supreme Court determined that the actions of the CEX employee directly threatened national security, thus upholding the original verdict. This case serves as a reminder to regulators and exchange operators that stricter compliance systems must be established. As critical infrastructure for crypto assets, CEXs should enhance employee background checks, strengthen internal audits, and improve transaction monitoring mechanisms to prevent platforms from being exploited for illegal activities. Industry experts generally believe that as the influence of cryptocurrencies continues to grow on the international stage, the security and compliance pressures faced by institutions like CEXs will only increase.