South Korea targets sub-$680 crypto transfers in sweeping AML crackdown

South Korean authorities have linked a $30 million hack of the Upbit cryptocurrency exchange to North Korea's Lazarus Group, a state-backed hacking organization. This breach, which occurred in November, has raised significant concerns about cybersecurity within the cryptocurrency sector, especially given the group's history of cyberattacks.

South Korean authorities suspect that the Lazarus Group, a North Korea-linked hacking organization, is behind a significant security breach at Upbit, the country's largest cryptocurrency exchange, resulting in a loss of approximately $36 million from its Solana wallet. This incident has prompted Upbit to suspend all deposits and withdrawals as investigations continue.

Upbit, South Korea's largest cryptocurrency exchange, reported a significant loss of approximately $36 million after a security breach involving its Solana hot wallet on November 27, 2025. The exchange has since suspended all deposits and withdrawals while investigating the incident and has pledged to cover customer losses.

South Korea's financial sector has been targeted by a coordinated supply chain attack involving Qilin ransomware, resulting in the theft of 2 TB of sensitive banking data attributed to a collaboration between Russia and North Korea.

Terraform Labs co-founder Do Kwon has requested a US court to limit his prison sentence to five years, while he faces a potential 40-year sentence in South Korea for separate charges. This plea comes amid ongoing legal challenges related to his role in the cryptocurrency sector.

Kakaobank has initiated the development of a won-pegged stablecoin, named 'Kakao Coin,' and is actively hiring blockchain experts to support this project. This move comes as South Korea's regulatory landscape evolves, particularly concerning security token offerings and stablecoin frameworks.

Naver Financial, a prominent South Korean internet company, is set to launch a stablecoin wallet service next month, marking a significant step in the cryptocurrency sector. This initiative aims to enhance digital currency transactions and provide users with a secure platform for managing stablecoins.