South Korea to Introduce No-Fault Liability for Exchanges Following Upbit Hacking Incident

According to reports by South Korean media on December 7, the South Korean financial authorities have decided to impose 'no-fault liability' on cryptocurrency exchanges, similar to that of financial institutions, in cases of unauthorized access or system failures.

On November 27, an incident occurred where approximately 44.5 billion won (about 4.8 billion yen) worth of Solana-based cryptocurrencies were illicitly drained from Upbit's hot wallet.

The South Korean authorities suspect the involvement of North Korea's hacker group 'Lazarus' and are advancing their investigation. However, under current law, there is no basis for imposing sanctions or compensation obligations on exchanges, which has been identified as a significant issue.

Related: Upbit's 4.8 billion yen hacking, authorities suspect North Korean Lazarus group...