Upbit Refunds $6.07 Million to 380 Crypto Scam Victims

The crypto market has faced millions of dollars in losses due to cyber fraud, and only a few cases have seen successful recoveries. One notable example is South Korea’s largest crypto exchange, Upbit, which recently refunded 8.5 billion won ($6.07 million) to 380 victims of voice phishing scams.

This recovery was made possible thanks to Upbit’s advanced Fraud Detection System (FDS) and its collaboration with the Seoul Metropolitan Police Agency.

Tech with Law Enforcement = End to Fraud?

Upbit’s operator, Dunamu, has been working with the police to identify victims who were either unaware of the scams or didn’t report their losses. Earlier this year, 5 billion won was returned to 246 victims, and on November 22, an additional 3.5 billion won was refunded to 134 more.

This ongoing partnership between Dunamu and law enforcement has been essential in protecting users’ assets from fraud.

Officials have praised the combination of technology and law enforcement in these efforts. Dunamu officials stressed that their cooperation with the Seoul Metropolitan Police has been key to safeguarding users from scams, which are becoming more widespread.

Dunamu’s Success Amid Challenges

While Upbit focuses on securing user funds, its operator Dunamu has also been experiencing strong growth. The company has earned over 100 billion won ($718 million) in transaction fees, which has helped boost its stock price.

As of November 19, Dunamu’s shares were trading at $95, a 27% increase from November 5, and peaked at $103 on November 14. This growth is attributed to expectations of strong performance from Upbit in Q4, as the exchange is the main revenue generator for Dunamu.

The “Trump Trade” Effect

In addition to its own efforts, Upbit has benefited from global market sentiment. Pro-crypto policies from President-elect Trump have fueled optimism, with the so-called “Trump Trade” increasing hopes for more favorable crypto regulations.

This positive sentiment has contributed to Dunamu’s strong market performance.

Crypto Impact 

This happened after the legacy of the 2019 Lazarus Group hack, where 342,000 ETH was stolen, and only a small portion of the stolen funds were recovered. This event further highlights the growing use of cryptocurrency theft, particularly by North Korea, to fund its operations. While North Korea continues to avoid responsibility for these crimes, South Korea has taken steps to protect its investors, including revoking licenses and imposing fines.