July 16, 2024
Upbit Crypto Exchange Faces 159K H1 Hacking Attempts: Report
Latest Cryptocurrency News

Upbit Crypto Exchange Faces 159K H1 Hacking Attempts: Report

South Korean cryptocurrency exchange Upbit has come forward with reports that it faced over 159,000 hacking attempts in the first half of 2023, according to its parent company, Dunamu. This statistic represents a substantial surge of 117% compared to the same timeframe in 2022 and an astonishing 1,800% increase since the first half of 2020.

Upbit, known as one of South Korea’s major cryptocurrency exchanges, boasting a 24-hour trading volume of around $1.2 billion, has taken proactive steps to counter hacking attempts and bolster security. In response, Upbit has increased the percentage of funds held in cold wallets to 70%. Cold wallets are considered more secure as they store private keys offline on external devices like hard drives and USBs, mitigating the risk of online attacks that hot wallets are susceptible to due to their online storage of private keys.

Although Upbit suffered a $50 million exploit back in 2019, it has managed to avoid any security breaches since that incident, as confirmed by a spokesperson from Dunamu who stated:

“After the hacking incident in 2019, we took various measures to prevent a recurrence, such as distributing hot wallets and operating them, and to date, not a single cyber breach has occurred.”

However, Upbit encountered a recent setback in late September when it had to temporarily suspend Aptos token services. This move came after the platform failed to recognize a fake token named “ClaimAPTGift.com,” which managed to infiltrate 400,000 Aptos wallets.

South Korean Representative Park Seong-jung of the People Power Party acknowledged the rising trend of cryptocurrency hacks and urged the South Korean government to take more robust actions. He specifically called upon the Ministry of Science and Technology to conduct large-scale whitewashing mock tests and investigate information security conditions to better prepare for cyberattacks on virtual asset exchanges, which are frequent targets of hacking attempts. He also pointed out that the role of the Ministry of Science and ICT in managing and supervising these exchanges appears to be ambiguous.

In a separate series of events, cryptocurrency exchanges faced a string of attacks in September. Hong Kong-based exchange CoinEx experienced a $70 million hack when one of its private keys was compromised. The company has assured affected users that they will be compensated for their losses. In another incident, Huobi Global’s HTX exchange lost $7.9 million in a September 24 exploit.

Image by Freepik

Disclosure Statement: Miami Crypto does not take any external funding, or support to bring crypto news to the readers. We do not have any conflicts of interest while writing news stories on Miami Crypto.

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