Media outlets said there were allegations that “most of the soldiers involved in the incident were officers in their 20s and 30s.”
These soldiers allegedly “urgently wanted” to borrow money “for cryptocurrency trading or investment.”
The military officers were reportedly refused loans when they applied at commercial bank branches.
Media reports have claimed that the loan sharks accepted the soldiers’ offer of using the passwords as collateral.
The soldiers then appear to have used this money to buy tokens from crypto exchanges. Spokespeople did not reveal the amount of money or type of tokens involved.
“Failure to repay the debt on time would put the soldiers who borrowed the money at risk,” one media outlet explained.
Soldiers Set to Face Charges
The investigative authorities also reportedly plan to indict the group for violating the Military Secrets Protection Act.
Officers appear to believe that the loan sharks did not have any links to suspected espionage groups.
The counter-intelligence agency thinks the passwords the soldiers allegedly shared were “level 3 secrets.”
Politicians have been quick to point the finger, with the Democratic Party taking aim at President Yoon Seok-yeol and the ruling People’s Power Party.
“Military security has been compromised by private loan sharks. It’s not correct to say that there are holes in the military security network. Instead, it would be more accurate to say that automatic doors have been installed.”
Democratic Party spokesperson Hwang Jeong-ah
South Korea warned of possible military actions if North Korea continues to fly more trash balloons across the border, a rare direct threat of retaliation https://t.co/rkdMsZIfhS
— Bloomberg (@business) September 23, 2024
‘A Travesty’
Level 3 military passwords are changed daily and cannot be transmitted over phone lines or chat apps. If they are leaked, they must be destroyed immediately.
Newly enlisted soldiers are told “never to reveal [these] passwords to anyone, regardless of their rank.”
It appears that these passwords can be used to access barracks and other military facilities. Even expired passwords are thought to be highly sensitive military data.
Investigators appear confident that the loan sharks did not try to use these passwords to access any base facilities.
Three-quarters of self-employed people and small business owners in South Korea report a monthly income of less than 1 million won ($750), well below the monthly minimum wage, government data showed Sunday.https://t.co/YWIhoiCbgi
— The Korea Herald 코리아헤럴드 (@TheKoreaHerald) September 23, 2024
Cho Do-hyun, a Seoul resident, told Cryptonews.com that the revelations made him “angry.” He said:
“To undermine national security like this, for the pure pursuit of personal financial gain – it’s an absolute travesty. It’s an insult to people like me who faithfully completed our military service to serve the country.”
Earlier this month, the nation’s newest crypto investigation unit said it had seized $107 million worth of assets in its first year of operations.