South Korea probes illegal gambling site linked to North Korean hackers
Prosecutors in South Korea are investigating a man in his 50s for allegedly operating an illegal online gambling site with the support of North Korean hackers. According to a report by the local media MBN, the Seoul Central District Prosecutor’s Office confirmed that the suspect, identified only as Mr. A, is being held in custody under suspicion of breaching the National Security Act.
According to the report, authorities suspect he received gambling software from North Korean actors via Telegram in 2022 and used it to establish a gambling platform hosted on Chinese servers. Investigators believe the site generated billions of South Korean won in profits. Evidence suggests that part of the proceeds may have been funnelled to North Korea, which would further implicate the suspect under laws regulating national security and financial crimes.
The prosecution plans to indict Mr. A following a broader investigation into possible related offences. The man was arrested on 7 May by the Seoul Metropolitan Police Agency’s Security Investigation Unit and transferred to the prosecutor’s office shortly thereafter.
Profits channelled to North Korea raise broader concerns
While South Korea continues its crackdown on illegal gambling, the alleged financial links to North Korea underscore concerns over Pyongyang’s evolving methods for raising foreign currency. According to the , North Korea increasingly relies on cyber operations, including scams and illicit gambling, to bypass international sanctions and generate income. The country’s cybercrime units, such as the Lazarus Group, operate extensively from China and are known for carrying out cryptocurrency thefts and facilitating financial flows through sophisticated laundering methods.
The Geneva-based civil society organisation, North Korea’s Bureau 39, responsible for sourcing foreign currency for the regime, has long collaborated with international criminal networks. It is estimated that North Korean IT workers, often employed illegally in countries like China, Russia, and Southeast Asia, contribute hundreds of millions of dollars annually to the regime. These workers are suspected of developing and distributing software for gambling and scam operations, some of which have targeted South Korea specifically.
In Mr. A’s case, the use of Telegram to connect with North Korean operatives mirrors tactics seen in other transnational crimes involving cryptocurrency fraud and digital scams. Telegram-based networks have been a recurring component in cases involving Huione Pay and its affiliate services, which have been accused of facilitating crypto-based money laundering for North Korean actors.
Gambling crackdown continues as authorities respond to growing trend
The incident comes amid a broader government effort to suppress unregulated online gambling activities. Illegal gambling remains a punishable offence under South Korean law, with those found guilty facing up to five years in prison or fines of up to 30 million won ($21,540). In a separate case, police in Busan recently apprehended a suspect linked to a gambling ring worth 800 billion won ($574.4 million).
South Korean authorities are increasingly concerned that these platforms serve not only as domestic criminal ventures but also as vehicles for international collaboration with hostile entities.
