Loan Sharks Arrested as Military Crypto Secrets Scandal Unfolds
South Korean prosecutors detained loan sharks accused of exploiting top-secret military passwords from crypto-buying soldiers. Authorities announced on October 2 that three individuals including the alleged ringleader, a 37-year-old man, and two employees have been indicted under military secrets, loan violations and fraud to collect debts. The trio allegedly lent money to indebted soldiers who invested in cryptocurrency and online gambling.
Stolen Military Passwords from Soldiers
Prosecutors said that distressed soldiers who wanted loans of all things had exchanged highly classified level 3 military passwords, through which they gain access to bases and know between friendly and enemy forces in combat. The passwords, which are frequently updated, are sensitive and can pose serious breaches if misplaced or used for anything else. The troubled soldiers allegedly borrowed between 1 to 2 million won ($759-$1,510) for personal financial problems.
Collateralized Military Secrets: A Stunner New Twist
The usurers allegedly provided loans at phenomenally high interest rates, some as high as 34,160% a year. Besides passwords, the usurers are said to have forced soldiers to give them top secret documents like identification tags, training plans, and organizational maps. Prosecutors said most soldiers approached by the lenders said no, but three gave in to the strong-arm tactics.
Spam Texts and Loan Sharking Operations
The 37-year-old ringleader was accused of operating an unregistered loan company using spam text messages to solicit loans, which named military personnel. The loan sharks, however, threatened to expose the secrets of the soldiers to their units. In fact, there was no indication that the purloined passwords or other classified information had been used to access military bases. The trial would be continued in order to obtain the extent of this criminal operation.
