Upbit crypto exchange suffers massive losses after breach
$50 million has gone missing as the exchange says it may have been an inside job
Just like any other currency under certain circumstances, the cryptocurrency world can also be a victim of thieves and hackers and this time Upbit has suffered an important theft. This South Korean company has just reported a hack of the company’s hot wallet for a total of 342,000 Ether (ETH), worth approximately $50 million. In an official press release, Dunamu, Upbit’s operator, confirmed the theft and believes that it may have been someone at the company behind the theft.
Lee Seok-woo is the current CEO of Dunamu and he has given his apologies to their customers for any inconvenience this situation might be causing and shares more details about the theft. Now following this event the company was clear to let their users know that important measures will be taken to prevent similar incidents or, just as Seok-woo called it, an outrageous hack, in the future. Upbit states they will dedicate all effort to protect their customers’ assets even though the whole situation still remains a mystery.
Without adding extra drama to the whole situation, this theft seriously represents an issue for this South Korean crypto exchange and the decision was made to not allow deposits or withdrawals at all for at least two weeks. Some other large-scale transfers were seen recently in this exchange; however, Upbit declared this was not abnormal as they were just moving some funds to some storage facilities.
With the anonymity involving the crypto world, there is no further information about who might be the culprit, but suspicion is that it was managed from the inside. However, this is not the first time Upbit has gone through something of the same kind. Upbit users were targeted through a phishing scam back in March.