South Korean authorities have successfully dismantled an international hacking ring responsible for stealing nearly 39 billion won ($28.1 million) from some of the country’s wealthiest individuals, including BTS member Jungkook. The Seoul Metropolitan Police Agency’s Cyber Investigation Unit revealed that 16 suspects, including two ringleaders identified as Mr. A (35) and Mr. B (40), have been arrested in connection with the cybercrime.
The hackers targeted high-profile figures by exploiting vulnerabilities in six poorly secured websites belonging to government agencies, IT platforms, and financial institutions between July 2023 and April 2024. They managed to steal personal data, including resident registration numbers and financial authentication information, from 258 victims, which included businesspeople, lawyers, celebrities, athletes, and virtual asset investors. The victims collectively held an estimated 55.22 trillion won in their accounts, with some balances exceeding 12 trillion won.
The hackers strategically targeted wealthy individuals who were unlikely to respond quickly, such as those serving prison sentences or military enlistments. By fraudulently opening 118 mobile phone accounts in the names of 89 victims using stolen identities, the hackers were able to bypass authentication systems and siphon funds directly from bank and crypto accounts. A total of 39 billion won was stolen from 16 victims, with an additional 25 billion won in attempted thefts blocked by financial institutions. The largest single loss was 21.3 billion won in virtual assets, with BTS star Jungkook being targeted for 8.4 billion won worth of HYBE stock.
Fortunately, financial institutions flagged unusual activity and prevented further losses, with 12.8 billion won already recovered through various measures. The investigation highlighted vulnerabilities in South Korea’s non-face-to-face authentication system, which the hackers exploited to carry out their crimes.
The police crackdown on the hacking ring began after the first report of unauthorized phone activations was filed in September 2023. The suspects were gradually apprehended between November and April, with the ringleaders being caught in Bangkok in May through international cooperation between Seoul police, Thai authorities, and Interpol. Mr. A has been extradited to South Korea and faces multiple charges, while Mr. B remains detained in Thailand pending extradition.
In a separate development, South Korean authorities are intensifying efforts to combat cryptocurrency-related crime as scams, fraud, and illegal financial schemes continue to emerge alongside the rapid adoption of digital assets. Recent cases include a crypto investment scam that defrauded 48 victims of nearly 734 million won and a senior police officer charged with embezzling around 700 million won from victims in a bogus crypto project.
Despite these challenges, South Korea remains a vibrant crypto market, with over 10.8 million active traders and significant regional inflows in 2024. The country is poised to approve its first spot crypto ETFs and a won-pegged stablecoin, signaling continued growth and innovation in the digital asset space.
Overall, the crackdown on the hacking ring and ongoing efforts to combat crypto-related crime demonstrate South Korea’s commitment to protecting its citizens’ financial security and fostering a safe and transparent digital economy.