Upbit Refunds $6.07 Million to Victims of Crypto Scams

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The crypto market has faced million-dollar losses all due to these cyber frauds and there are only a few cases where a possible recovery was made. In a notable incident, South Korea’s largest crypto exchange, Upbit, recently refunded 8.5 billion won ($6.07 million) to 380 victims of voice phishing scams. This recovery was made possible through its real-time Fraud Detection System (FDS) and collaboration with the Seoul Metropolitan Police Agency. 

Dunamu, Upbit’s operator, has been working with the police to identify victims who were unaware 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.

Collaboration with Law Enforcement

The partnership between Dunamu and the police has been crucial in protecting users’ assets, with officials praising the effective use of both technology and law enforcement. This collaboration highlights the importance of a combined effort to combat crypto fraud, which has been on the rise. Dunamu officials noted that cooperation with the Seoul Metropolitan Police was key to safeguarding user assets from scams.

Dunamu’s Success Amid Challenges

Meanwhile, Upbit’s operator, Dunamu, has seen significant success. The company has generated over 100 billion won ($718 million) in transaction fees, contributing to a surge in its stock price. As of Nov. 19, Dunamu’s shares were trading at $95, a 27% increase from Nov. 5, with a peak of $103 on Nov. 14. The stock’s rise is attributed to strong expectations for Upbit’s Q4 performance, as the exchange generates the bulk of Dunamu’s revenue.

Moreover, pro-crypto policies from President-elect Trump, have also helped boost market sentiment toward Upbit. The “Trump Trade” has fueled hopes for favorable regulations and growth in the crypto space, further supporting Dunamu’s 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 has failed to track such cases. South Korea is taking all the measures to protect its investors by revoking licenses to imposing fines.