Several South Korean officers may use military secrets as collateral to borrow money at high interest rates to purchase cryptocurrencies

ChainCatcher news, according to South Korean media reports, several South Korean officers may have used highly classified military passwords as collateral when borrowing money from loan sharks to purchase cryptocurrency.

The South Korean Ministry of Defense stated that in June of this year, an unnamed officer was sentenced to probation and added that he officially retired on September 19.

A spokesperson stated that officials from the Defense Intelligence Command "became aware of the crime committed by an active-duty captain earlier this year" and prosecuted him in military court in March for violating the Military Secrets Protection Act. The officer was sentenced to two years and six months in prison, with a four-year probation. The intelligence agency is further investigating the situation of "active-duty officers" in a unit in the Chungcheong region using passwords to obtain loans for "trading or investing in cryptocurrency."

Media reports indicate that there are allegations that "most of the soldiers involved in the incident are officers in their 20s and 30s. They are eager to borrow money for cryptocurrency trading or investment."