A cryptocurrency exchange Chief Executive Officer (CEO) has been convicted of espionage after receiving virtual assets, including Bitcoin worth approximately 700 million KRW (about 485,000 USD), from a suspected North Korean operative.
The Supreme Court’s Third Division, led by Chief Justice Lee Suk-yeon, upheld the lower court’s sentence on December 28. The defendant, identified only as Mr. Lee (41), was sentenced to four years in prison and a four-year suspension of qualifications for violating the National Security Law.
Lee allegedly aided espionage efforts by purchasing a watch-type hidden camera on orders from a North Korean hacker. He attempted to recruit an active-duty officer and acquired components for hacking equipment, which he connected to a laptop.
The watch was identified as a covert tool intended to capture classified military information stored at a base, targeting the Korean Joint Command and Control System (KJCCS), a Level 2 military secret.
In a separate incident, Lee reportedly offered another active-duty officer between 500,000 and 1 million USD (approximately 722 million to 1.4 billion KRW) in cryptocurrency via Telegram in exchange for military organizational charts and other sensitive information.
Lee maintained his innocence, claiming uncertainty about whether his contacts were North Korean agents.
The initial trial court determined Lee’s involvement with North Korean operatives based on payment records and account analyses. It concluded that Lee acted with indirect intent, resulting in the four-year prison sentence.
The court emphasized the severity of Lee’s actions, stating that his pursuit of personal financial gain could have jeopardized national security.
However, mitigating factors were considered in sentencing. The watch camera’s poor quality likely prevented the actual collection of military secrets, and the hacking equipment was seized before use.
Both prosecution and defense appealed, but the appellate court upheld the original verdict.
The appeals court criticized Lee’s lack of remorse, noting that while he acknowledged his actions were inappropriate, he continued to deny violating the National Security Law.
In his final appeal to the Supreme Court, Lee argued that assisting with the purchase and setup of hacking equipment did not constitute a violation of the National Security Law.
The Supreme Court rejected this argument, affirming the lower court’s ruling.
The high court found no legal errors in the lower courts’ interpretation of espionage and aiding charges under the National Security Law, dismissing appeals from both the prosecution and the defendant.