Upbit Recovers $6.07M in Crypto Scams: 380 Victims Reimbursed Amid Fraud Crackdown

Upbit, South Korea’s top cryptocurrency exchange, has refunded 8.5 billion won ($6.07 million) to 380 victims of voice phishing scams.

Using its advanced Fraud Detection System (FDS) and working with the Seoul Metropolitan Police, Upbit blocked the fraudulent transactions and recovered the stolen funds.

This is another example of Upbit’s strong protection for users as crypto scams increase. Earlier this year, Upbit recovered 5 billion won for 246 victims and on November 22, 3.5 billion won ($2.7 million) was returned to 134 users. A Dunamu official said, “This is the power of technology and collaboration with the police as the crypto market grows.”

Lazarus Group: A Crypto Threat

Upbit is still dealing with the aftermath of the 2019 Lazarus Group hack. This North Korean-backed cybercrime group pulled off one of the biggest crypto heists in history, stealing 342,000 ETH worth 1.4 trillion won at the time. Investigators found out that Lazarus laundered Ethereum through 51 exchanges in 13 countries including the U.S. and China.

Despite the efforts, authorities only recovered 4.8 Bitcoin from a Swiss exchange. The stolen Ethereum was often exchanged for Bitcoin on North Korean-controlled exchanges where it was sold at 2.5% discount. This shows North Korea’s growing dependence on crypto theft to fund their state activities and is a persistent threat to global crypto.

Crypto Fraud: Let’s Work Together

Upbit’s efforts against fraud shows that international cooperation is needed to combat crypto crimes. The recovery of stolen funds proves that technology like FDS and law enforcement can reduce losses for investors.

As crypto grows globally, Upbit is setting the standard for the industry to follow and for other exchanges to protect users and rebuild trust in digital assets. We must remain vigilant and work together to stop cybercriminals in this fast changing crypto landscape.