SEOUL—Investigators in South are looking into Korea’s possible involvement in a from a exchange that collapsed here on Tuesday, according to people familiar with the situation, as the sanctions-choked regime develops new ways to raise money.

The investigation into the hack of Seoul-based exchange Youbit, led by South Korean law enforcement and a state cybersecurity agency, is still in its infancy and a review of the malware code could take weeks, the people said.



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