Another Cryptocurrency Exchange Hacked. This Time Upbit!

2 min reading

The CEO of Upbit, one of the largest cryptocurrency exchanges in the world, confirmed that it has been hacked and robbed for nearly $51 million in Ethereum cryptocurrency. All transactions on the exchange have been suspended.


Upbit lost $51 million

The largest South Korean cryptocurrency exchange and one of the largest in the world, Upbit, notified users about a hacker attack and theft of 342,000 Ethereum tokens (ETH) from its hot wallet to an unknown address. At the current rate, the stolen tokens were worth about $50.9 million. The incident was confirmed on the 27th of November in an official statement by Lee Seok-woo, the CEO of Upbit's operator, Dunamu.

The transaction was registered by a Whale Alert dealing with tracking transactions in blockchains:

Whale Alert observed as well that from around 5:00 UTC time, a great number of other cryptocurrencies worth several dozen million dollars were sent from Upbit. Among others were the Tron (TRX), BitTorrent (BTT), Stellar (XLM), OmiseGo (OMG), EOS and Status (SNT) coins. As reports show, these are payments from the cryptocurrency exchange, which wanted to secure the remaining funds by transferring them from hot to cold wallets.

In his statement, Lee Seok-woo revealed that: 

At approximately 13:06 on November 27th, 2019 (KST), 342,000 ETH was sent from UPbit’s Ethereum hot wallet to an anonymous wallet address – 0xa09871AEadF4994Ca12f5c0b6056BBd1d343c029.

 

The cryptocurrency exchange will return the stolen funds to the customers

By apologizing to users for any experienced "inconveniences", Lee outlined the measures the exchange took after detecting the incident. He did not name it a "hack", though. According to local media, however, Upbit may have been the victim of a hacker attack.

Currently, Upbit does not allow for any withdrawals or deposits. It was originally reported that withdrawals and deposits were suspended due to "server maintenance". Currently, though, the company explains this with security issues and as a countermeasure to more hacker activities. Lee Seok-woo claims that it will take at least two weeks to resume deposits and withdrawals. The exchange has also transferred all cryptocurrencies stored in a hot wallet to a cold wallet so as to prevent further losses.

It has also pledged to protect user assets, stating that the stolen funds (that is nearly $51 million in ETH) will be covered from the corporate fund. If the exchange's announcement proves to be true, it looks like it will fully cover the losses of the customers, then. They will have to wait a bit, unfortunately. About two weeks, perhaps.

Ethereum Rate (ETH)

The hacking attack on the Upbit cryptocurrency exchange and the theft of Ethereum did not affect the price of the token, or at least it is not noticeable. Currently, the ETH exchange rate is $152.4, which means a 1.4% increase in 24 hours.

Dear customer,

We use cookies to provide our services correctly and safely. Cookies are small text-based data sets that shall be saved on the device you are using in connection with the use of this instnat website. Cookies are created in order to ensure proper functioning of thes instant website. By clicking the button "I accept and go to the website", you implicitly agree to creation of the cookies on your computer and to deploy automatic tracking and data collection and processing on behalf of the Tokeneo TEO OU. Click the above-captioned button is also tantamount to accepting website's privacy policy. Closing the notification by means of "X" is unequivocally connected with your consent. If you do not agree to any of the above, please discontinue using our Website.

“Cookies” shall make an identification of the software used by you and to customization of this instant website to your needs. Cookies contain the name of the domain from which they origin, duration of period of their storage on your computer and an assigned value.

Third party cookies:
We also use third-party cookies for the following purposes:

  • creating statistics - helping to understand the way Users use the Website, which allows to improve its structure and content with use of the analytical tools
  • defining a user profile - in order to display custom-tailored content in advertising networks.

External entities that might be source of any third-party cookies on this instant Website are as follows:

Using a settings of your web browser or by using pre-set configuration tools available in our service you can independently and at any time change the settings concerning your use of the “cookies”, specifying the conditionsof their storage and how your device is creating and downloading them. These settings can be changed to block the automatic handling of cookies in the settings of your web browser or inform about their placement on your device each time.

Detailed information about the options related to use of “cookies” is available in the settings of your software (web browser).

Service privacy policy

This instant document lays out the principles of the Privacy Policy on the tokeneo.com/news/pl website (hereinafter referred to as the "Website" or "Service"). The administrator of the Website is TOKENEO TEO OÜ (an Estonian law limited liability company) with its registered offices in Tallinn (in the province of Harju Maakond), at 19-7K Maakri Street (in the district of Kesklinna Iinnaosa), 10-145 Tallinn, Estonia, registered on 21.12.2018 in the Estonian Business Register under number 14630242, using the EU VAT number: EE102149487.

The full document to read the Tokeneo privacy policy is available in this document.

Advanced settings can be changed in your browser.