Cryptocurrency Exchange UpBit Suspends Withdrawals and Deposits After Major Heist
UpBit, one of the world’s largest cryptocurrency exchanges, has been forced to suspend account withdrawals and deposits following a significant online heist. The South Korean exchange issued a temporary suspension notice on Wednesday, with CEO Lee Seok-woo of company owner Dunamu confirming the incident.
The heist occurred at around 1pm local time on Wednesday, when 342,000 ETH (approximately $52 million) were transferred from an UpBit hot wallet to an unknown recipient. In response, UpBit has taken steps to cover the losses of affected users and enhance security measures by transferring all remaining cryptocurrency into the company’s cold wallet.
Lee Seok-woo stated, “It is estimated that it will take at least two weeks for the deposit and withdrawal services to resume. I will provide further updates once this process is complete.”
Recent Cyber-Attacks on Cryptocurrency Exchanges
UpBit’s security breach is the latest in a series of successful cyber-attacks targeting cryptocurrency exchanges in recent months. Other notable incidents include double spend attacks on US firm Coinbase totaling over $1 million, a $32 million loss at Japan-based Bitpoint, a $4.5 million theft at Singaporean company Bitrue, and security breaches at Malta-headquartered Binance.
Peter Wood, CEO of CoinBurp, emphasized the importance of investors choosing secure and reliable trading platforms. He warned, “Cryptocurrency transactions are virtually untraceable, and there is often no governing body to provide insurance or refunds for losses. It is crucial for individuals to thoroughly research the security measures of any crypto exchange before conducting transactions.”
North Korea’s Involvement in Cryptocurrency Hacking
Earlier this year, the United Nations accused North Korea of utilizing its increasing hacking capabilities to target cryptocurrency exchanges as a means of generating revenue for the state. The country is believed to have amassed $2 billion through such cyber-attacks.
The recent security breach at UpBit serves as a stark reminder of the risks associated with the cryptocurrency market. Investors are urged to exercise caution and diligence when engaging in digital asset transactions, particularly on platforms that have been targeted by hackers in the past.
Stay tuned for updates on UpBit’s efforts to restore account services and enhance security protocols in the aftermath of this major heist.