3 months ago 2 min read

$6.7 Million Cryptocurrency Stolen From Late Nexon Founder's Account

Former Chairman Kim Jeong-joo, founder of Nexon

Key Ideas:

  • An account belonging to the late founder of Nexon had 8.5 billion won (just over $6.7 million) taken from it.
  • This sum was stolen by a hacker during the course of 10 transactions.
  • Several conspirators were detained. The mastermind has not yet been apprehended. The sum has not yet been recouped.

An account belonging to the creator of Nexon had 8.5 billion won (just over $6.7 million) taken from it. After Kim Jung-ju passed away in the United States in February, he was attacked. By utilizing the previous Chairman Kim's personal information, the hacking squad stole virtual currency.

The USIM (subscriber identification device) was illegally copied to the virtual currency exchange Korbit on May 28 by Mr. Jang (39), a hacker criminal organization member, and others.

They made 27 transfers totaling 8.5 billion won over the course of ten days to other accounts using digital currencies like Bitcoin and Ethereum. The investigation agency was notified by Korbit's side of their suspicion that the transaction took place on the account of the deceased former chairman Kim.

Later, in September, Jang was detained and charged with fraud in accordance with the Serious Punishment for Specific Economic Crimes Act. The Seoul Eastern District Court sentenced Jang to six years in prison last month and noted that the first trial's "crime is exceedingly poor."

The decision states that Mr. Jang and his allies illegally duplicated USIM using the personal data of the former chairman Kim that they obtained from the leader of the hacking group. Then, accessing the Korbit account and withdrawing the saved virtual currency, he pretended to be former Chairman Kim.

Mr. Jang copied about 10 USIMs in addition to former chairman Kim, although it is unknown whether he had access to their accounts.

"The head has not been arrested yet," a representative of the investigating agency stated.

"I discovered that it was Nexon Chairman Kim Jeong-information ju's after acquiring personal information from the general manager via the USIM copying process."

It is well known that the financial loss incurred by the former Chairman Kim has not yet been made up.

"Further evidence that the other person got the bitcoins after becoming aware of the crime is required in order to seize them. Bitcoins were moved to an account in the name of another individual."

Due to this incidence, several people in the sector believe that the asset protection system that is left in place when a holder of a virtual currency account passes away has to be updated. Currently, the assets of the bereaved Deceased people at banks, insurance companies, and various pension institutions were asked collectively when bereaved families applied for a "check of heirs' financial transactions" after the owner's death in the case of accounts with financial institutions like banks. Additionally, when financial institutions receive notice of a death, they freeze accounts to safeguard inherited assets and prevent money from being stolen through hacking.

"We have improved screening methods like verifying visitors' identities in order to stop similar problems from occurring again (as was the case with former Chairman Kim). when an anomaly, such as an unusual transaction pattern, is discovered."
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