Upbit is hacked, apparently from within the exchange itself, amounting to losses of more than 50 million won, the official currency of South Korea.

Upbit is hacked. The main cryptocurrency exchange in South Korea notified its users about 9:00 a.m. (UTC) of stealing 342,000 Ether (ETH) from your hot wallet.

Lee Seok-woo, the CEO of Upbit operator Dunamu, confirmed the incident through an official statement on the Upbit website on November 27.

In his statement, Lee Seok-woo revealed that:

“At 1:06 PM on November 27, 2019, ETH 342,000 (approximately 58 billion won) was transferred from the Ethereum Upbeat Hot Wallet Optimist to an unknown wallet. The address of the unknown wallet is 0xa09871AEadF4994Ca12f5c0b6056BBd1d343c029.”

Upbit said he apologized to the users for any inconvenience caused, and its CEO told the measures taken by the exchange after he detected the incident, but refrained from calling it a hack, which could indicate that it was an internal job.

The exchange reported that it will use corporate funds to protect user assets, indicating that the ETH 342,000 (approximately USD $50 million) will be covered by corporate assets. They even announced that they have already transferred all the crypto assets kept in their hot wallet to cold storage.

Upbit also said that deposits and withdrawals will take at least two weeks to resume, with Lee Seok-woo promising to inform users as soon as they resume.

Tracking transfers

The CEO also indicated that all other recent large-scale transfers, calculated at more than USD $100 million in multiple cryptocurrencies, which have been sent from Upbit today. However, the exchange said that these other transactions, apart from Ethereum’s abnormal departure, “were not abnormal,” but were related to the movement of exchange assets between the hot wallet and cold wallets.

Around 5:00 a.m. (UTC), about 10 transactions, each of USD $1.51 million from Tron (TRX), as well as USD $3.5 million from BitTorrent (BTT), were sent to unknown addresses, according to Whale Alert. 30 minutes later came the official statement of Upbit.

Then, it was reported that transactions worth USD $8.7 of Stellar Lumen (XLM), USD $1.08 million in OmiseGo (OMG), USD $22 million in EOS, and USD $3.4 million in Status ( SNT) were subsequently sent from Upbit portfolios to those of the Bittrex crypto exchange.

This would not be the first antecedent in this year. In May, a group of North Korean hackers allegedly attacked the users of the South Korean exchange, with a skillful phishing maneuver.

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