South Korea’s Supreme Court finalized a four-year prison sentence and four-year suspension of civil rights for Lee, the head of a digital asset exchange.

Lee was convicted of violating the National Security Act by attempting to leak military secrets to North Korea in exchange for digital assets.

The ruling was issued on November 20, 2025, by the Supreme Court’s Criminal Division 3.


Key Facts of the Case

Prosecutors indicted Lee in April 2022.

Between July 2021 and March 2022, Lee allegedly acted on instructions from an individual believed to be a North Korean operative.

Lee received digital assets worth approximately USD 600,000, paid in two separate transfers, as compensation.

He attempted to facilitate the leak of military secrets and supported the development of a remote hacking device.

Lee purchased components for a device resembling a “Poison Tab”, a USB-style hacking tool, enabling remote programming by North Korean agents.


Defense Claims

Lee argued he believed the cooperation involved developing an automated digital asset program.

He claimed he asked for remote assistance via TeamViewer only for software development.

He denied recognizing the device as a hacking tool or as an item constituting illegal “convenience” under the National Security Act.


Lower Court Decisions

Trial court sentenced Lee to four years in prison plus four years of civil rights suspension.

The court found Lee at least partially aware that:

The counterparty was likely a North Korean agent, and

His actions posed a real and concrete risk to national security.


Appeals court upheld the verdict, citing:

Digital forensic analysis by police experts,

Files found on Lee’s laptop and storage devices,

Evidence that the completed device could function as a Poison Tab hacking tool.



Supreme Court Ruling

The Supreme Court rejected both prosecution and defense appeals.

It held that the lower courts:

Did not exceed the limits of judicial discretion, and

Correctly applied the law regarding “providing convenience” to enemy forces under the National Security Act.


The original sentence was confirmed and made final.


Why This Case Matters

The decision underscores that digital assets can constitute payment in serious national security crimes.

It signals strict judicial scrutiny of tech-enabled espionage, even when disguised as software development.

The ruling draws a clear line: plausible deniability collapses when technical assistance enables hostile state actors.

Article: https://www.lawtimes.co.kr/Case-curation/214386