A South Korean crypto exchange CEO has been indicted on charges of leaking classified information to North Korea. The executive, along with an army major, was imprisoned earlier this month in the espionage operation.

The two countries have been hostile towards one another since their bloody conflict in the early 1950s. The long-standing rivalry between North Korea and South Korea, in addition to recent conflicts with other countries and North Korea, only adds to the accusations.

On Thursday, South Korean authorities announced the arrest of the exchange’s CEO only identified as Lee, as well as the army chief Captain B.

According to South Korean authorities, the two Koreans gave login credentials for the country’s joint military headquarters to North Korea, allowing foreign access. Both suspects were detained for breaching the National Security Act of the Republic of Korea (ROK).

How It Began

Over the past six years, the North Korean agent had met Lee at a crypto community, according to local press. While little happened between them over the years, last year July’s exchange of secret information began.

The informant approached Lee with the aim of recruiting a current-duty officer, according to authorities.Finally, the entrepreneur approached Captain B, claiming that he would commit the crime only if he were paid in Bitcoin.

The executive director also provided the captain with a spy watch. He also bought a hacking device known as a “poison tap,” which allowed the agent to access his laptop remotely.

The pair traded login information for large amounts of money paid in bitcoin. According to authorities, the army officer received roughly $38,000 in BTC, while Lee amassed more than $600,000 worth of BTC.

Luckily, the military and police both confirmed that the real hacking was unsuccessful. This means that the computer network remained unpenetrated.

Although the attempt to hack into our military networks failed, confidential information was still leaked by our own Captain B to the North Koreans.

Updates

The identity and whereabouts of the agent are unknown. The statements of the suspects, on the other hand, imply that the mole is a North Korean. For a long time, North Korea and South Korea have had an antagonistic relationship.

This nation’s crime is only making things worse. This is the first documented case of an active-duty officer being recruited online, according to media reports. For the time being, investigators are looking into whether there was a middleman involved between the crypto entrepreneur and the army officer.

North Korea has been linked to a number of assaults on crypto businesses in recent weeks, as well as ongoing efforts against other countries and corporations.

Two more assaults on centralized exchanges linked to North Korean hacking organization Lazarus Group were discovered three months afterward, according to authorities.

For one thing, Chainalysis linked Lazarus to the breach of Ronin Network last month, resulting in a $600 million loss. According to another allegation, North Korean hackers stole around $400 million in cryptocurrency in at least seven crypto assaults throughout the year.