"Received Bitcoin from North Korean Hacker and Leaked Military Secrets" - Four-Year Prison Sentence Finalized for Man in His 40s

The operator of a cryptocurrency exchange, who received Bitcoin from an individual believed to be a North Korean hacker and leaked classified military information according to that person's instructions, has been sentenced to four years in prison.

On December 28, the Supreme Court's Third Division (Presiding Justice Lee Suk-yeon) announced that it had recently upheld the lower court's ruling, sentencing Mr. Lee (42), who was indicted on charges of violating the National Security Act (espionage, etc.), to four years in prison and four years of disqualification.

In July 2021, Mr. Lee received instructions from a North Korean hacker (Telegram username: Boris) to "recruit an active-duty officer necessary for detecting military secrets." He approached Captain Kim (33), then an active-duty officer, via Telegram, offering cryptocurrency in exchange for leaking military secrets, and was brought to trial on these charges. In accordance with Boris's instructions, Mr. Lee sent Kim a wristwatch-type hidden camera, which Kim received and brought into a military unit, according to investigations.

Mr. Lee also connected hacking equipment in the form of a USB device (Poison Tap) used for detecting military secrets to a laptop, enabling the hacker to program it remotely. Through these methods, it was confirmed that Kim provided Boris and Lee with data such as login credentials for the Korea Joint Command and Control System (KJCCS). However, the actual hacking attempt was unsuccessful. Mr. Lee also approached another active-duty officer, offering money in exchange for providing a military organization chart, but this officer refused the offer.

Through these crimes, it was revealed that Mr. Lee received Bitcoin worth approximately 700 million won, while Kim received Bitcoin worth about 48 million won.

The first trial court found Mr. Lee guilty and sentenced him to four years in prison and four years of disqualification. The court determined that the source of the Bitcoin Mr. Lee received as compensation for his activities was indeed a North Korean operative, and that, based on the instructions received, Mr. Lee was at least implicitly aware that the individual was a North Korean agent. The court stated, "At the very least, it must be acknowledged that the defendant was aware to some degree that he was attempting to obtain military secrets for a nation or organization hostile to the Republic of Korea," adding, "There is no reason to exclude North Korea from the defendant's awareness." The court further explained, "Considering that the defendant committed a crime that could have endangered the entire Republic of Korea for purely personal and economic gain, a severe punishment is warranted. However, since the equipment provided by the defendant did not succeed in detecting military secrets, not all attempted actions led to results," clarifying the reasoning for sentencing.

Both the prosecutor and Mr. Lee appealed, but the appellate court and the Supreme Court both found no error in the previous judgments and dismissed the appeals. The Supreme Court stated, "There was no violation of the rules of logic and experience, nor any misunderstanding of the legal principles regarding the commencement of execution of the National Security Act offense, that would exceed the limits of free evaluation of evidence."

Previously, Captain Kim, who was indicted on charges including violation of the Military Secrets Protection Act, was sentenced to ten years in prison and a fine of 50 million won by the Supreme Court.