More

    Attack of Upbit Marks Seventh Crypto Exchange Hack of This Year

    • The first attack of this year was against Cryptopia, which resulted in the exchange filing for bankruptcy.
    • UpBit shut down operation for the next two weeks as the result of the attack.

    Hackers are getting bolder and smarter, which isn’t good news for the cryptocurrency community. On January 15th, Cryptopia shut down as they found a “security breach,” causing them to experience massive losses. The platform remained relatively quite as local police investigated the matter through January and February, stating that the investigation prevented them from making any comment.

    Even with this investigation, it still isn’t clear how the hacking took place, but a discovery in August revealed that the exchange had been using their own wallet to pool the funds of users. The exchange tried to correct the damage after this hack, and even tried to relaunch in early spring. However, the exchange ended up keeping doors closed permanently when it filed for bankruptcy.

    In March, DragonEx became the next hack, losing an “undisclosed” amount of funds from user accounts, eventually revealing the total cost to be $7 million in a security breach, after declining to even release an estimate. There was no promise of a refund, unlike other exchanges, but it told consumers that it was working on a reimbursement effort that they called a “preliminary compensation plan.” The plan would reimburse funds in the form of Tether or Dragon Tokens.

    In the same month, Bithumb became a victim of the third attack of the year, stealing $13 million in EOS, as well as $6.2 million in XRP. This attack came within the same year that Bithumb lost $31 million in a separate attack in 2018. The platform suggested that the attack was an inside job, considering the “abnormal withdrawal” found in one of the wallets. Based on statements from Bithumb, no user funds were ultimately lost.

    By May, the fourth hack took place against Binance, resulting in a loss of $40.7 million. Binance was the largest exchange by volume, but it discovered a vulnerability in its hot wallet, which reportedly only held 2% of the total funds in its possession. Hackers attempted to wash the stolen coins, transferring them quickly through a series of transactions into smaller wallets where they were held or cashed out in fiat currency. For a week, Binance worked to increase the strength of its security efforts, shutting down deposits and withdrawals with consumers in the meantime. By May 15th, their services were reopened with a promise to restore funds for the users that lost their own in the hack.

    Next came the hack of BiTrue in June, which primarily pulled XRP ($4.01 million) and ADA ($231,800) in the hack. The breach was made possible with an exploit made on the internal user access review process, allowing the hackers to send 9.3 million in XRP and 2.5 million in ADA across multiple exchanges. However, BiTrue was able to act quickly by working with those partner exchanges to freeze the funds. Like Binance, BiTrue promise to issue a refund.

    The sixth attack was against Bitpoint, which lost $28 million in a hack in July, which impacted 50,000 users. The cause is still unknown, but Bitpoint ultimately had to shut down activity on the platform for about a month. The parent company of Bitpoint, Remixpoint, quickly promised to reimburse users who were affected soon after the hack. The exchange relaunched their trading for Bitcoin, Bitcoin Cash, Ether, Litecoin, and XRP in August this year.

    Now, Upbit is the latest to face these challenges. At 9:00 UTC on November 26th, the only warning sign was an “abnormal transaction” before 342,000 in Ether was lost just a few minutes later. According to the exchange, the loss didn’t come from user funds, but the exchange has shut down all functions for the two weeks following the hack.

    Considering the frequency, it would be hard to believe that more hacks won’t happen this year, and there is a clear risk that users and exchanges take with using any kind of private or public wallet. Will 2020 be the same? Hopefully, the fate of these exchanges will be much different.

    This year has not been kind to exchanges and their customers. Hackers have been aggressive about taking on these platforms to steal money from unsuspecting consumers, leading them to attack another exchange – Upbit. This attack marks the seventh exchange hack to occur in 2019 alone.

    Get Free Email Updates!

    *Action* Enter Best Email to Get Trending Crypto News & Bitcoin Market Updates

    I will never give away, trade or sell your email address. You can unsubscribe at any time.

    Avatar
    Bitcoin Exchange Guide News Team
    B.E.G. Editorial Team is a gracious group of giving cryptocurrency advocates and blockchain believers who want to ensure we do our part in spreading digital currency awareness and adoption. We are a team of over forty individuals all working as a collective whole to produce around the clock daily news, reviews and insights regarding all major coin updates, token announcements and new releases. Make sure to read our editorial policies and follow us on Twitter, Join us in Telegram. Stay tuned. #bitcoin

    [Alert] Use the author's self-conducted information at your own risk, do you own research, never invest more than you are willing to lose.

    [Disclosure] The published news and content on BitcoinExchangeGuide should never be used or taken as financial investment advice. Understand trading cryptocurrencies is a very high-risk activity which can result in significant losses. Editorial Policy \\ Investment Disclaimer

    LEAVE A REPLY

    Please enter your comment!
    Please enter your name here

    3,288FansLike
    2,765FollowersFollow
    4,134FollowersFollow

    Live Bitcoin Price & Latest BTC Charts

    Today's Latest Crypto News

    Gold Hits 7-Year High As Investors Jump into Safe Haven Assets But Bitcoin Not Following

    Coronavirus outbreak has the investors fearing a slowdown in global growth and piling into safe-haven assets like gold US dollar also rising while...

    Russia’s Central Bank And FSB Agree to Ban Cryptocurrency Payment Options

    A Russian local news source, recently reported that the country’s Central Bank and Federal Security Service (FSB) finally came to an agreement that cryptocurrencies...

    Binance CEO: We Aren’t “Operating” in Malta After MFSA Says Exchange Is “Not Authorized”

    Malta Financial Services Authority (MFSA) releases a statement stating “Binance is not authorized by the MFSA to operate” in the country Binance CEO...

    Virtual Game World Decentraland Launches On Ethereum, $100k In Hidden Prizes

    A virtual game that is developed on the Ethereum network has finally been launched to the public, the Block reports. The new game allows users...

    What’s Got Algorand's ALGO Jumping 26% And Still “Hot”

    Algorand flying, up 100% in 2020 so far, got fuel for another 100% run-up Binance.US announcing support for Algorand (ALGO) staking that went...

    BitcoinExchangeGuide is a hyper-active daily crypto news portal with care in cultivating the cryptocurrency culture with community contributors who help rewrite the bold future of blockchain finance. Subscribe on Google News, see the mission, authors, editorial links policy, investment disclaimer, privacy policy. Got News? Contact us, we are human too. Note: nothing here is financial advice, do your own research thoroughly.