Hackers Steal $50 Million In Ethereum From South Korean Cryptocurrency Exchange Upbit

by Sunny Hoi

South Korean cryptocurrency exchange Upbit has been hacked, losing approximately $50 million worth of Ethereum (ETH) cryptocurrency.

Upbit’s CEO Lee Seok-woo confirmed the cyberattack in a statement posted to the crypto exchange’s website Wednesday.

Notably, Upbit said that 342,000 ETH (Currently worth approximately $50 million) was transferred from its Ethereum hot wallet to an unknown wallet, further stating: ” “Unknown wallet address is 0xa09871AEadF4994Ca12f5c0b6056BBd1d343c029”

Consequently, Upbit has now moved all cryptocurrencies from its hot wallet to a cold wallet and stated that it would cover the cost of any customer losses via its assets.

Prior to publishing the details of the security breach, Upbit suspended cryptocurrency deposits and withdrawals as a result of service checks.

In the latest announcement, the crypto exchange said it would take approximately two weeks for crypto-asset deposit and withdrawal services to recommence.

Furthermore, Cryptocurrency Blockchain tracking Twitter account Whale Alert announced several enormous transfers from Upbit accounts to unknown accounts, including this immense ETH transfer:

The gigantic withdrawal alerts did raise suspicions, including the fact that various individuals on social media considered it a security breach.

In addition, Whale Alert pointed out that numerous withdrawals occurred via Upbit, including other cryptocurrencies and tokens (BitTorrent & Tron), inter alia. Nevertheless, Upbit said only Ether holdings were impacted.

In March, Upbit and cybersecurity firm East Security purported that North Korean hackers had carried out a phishing scam directed at its customers.

Upbit’s security breach marks this year’s 8th breach. Unsurprisingly, cybercriminals have raked in an estimated $4.3 billion (USD) this year, according to research conducted by cryptocurrency intelligence firm CipherTrace.

At the beginning of this month, an unknown hacker stole $500,000 from Vietnam-based cryptocurrency exchange VinDAX.

In July, hackers stole $32 million worth of cryptocurrencies (Bitcoin, Bitcoin Cash, Ripple, Ethereal, and Litecoin) from Japanese cryptocurrency exchange Bitpoint.

In June, Singapore-based crypto exchange Bitrue was hacked, losing over $4.5 million in user assets (Ripple & Cardano tokens) to a hacker.

In May, Binance lost $40 million worth of Bitcoin (BTC) to hackers.

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