Upbit Crypto Exchange Reopens Ethereum (ETH) Wallet Services After $49 Million Hack
Upbit, one of the major crypto exchanges in South Korea, has restarted Ethereum (ETH) wallet services almost 2 months after being attacked by hackers for $49 million ETH.
It has been officially made public that after an enhancement to its wallet security structure, Upbit is supporting deposits and withdrawals in ETH again. In a tweet from Monday, it has been indicated the services are again available. However, the traders will have to create new wallet addresses that will hold the ETH they have with the exchange, said the firm. The ETH will be automatically deposited to these new addresses.
— Upbit Global (@upbitglobal) January 13, 2020
$49 Million ETH Stolen in a Transaction
Back in November 26, 2019, Upbit said it had a transaction that it called “abnormal”, through which approximately 342,000 ETH straight from its hot wallet went missing, which was valued at about $49 million. The rest of the digital assets remaining were transferred into cold storage as a measure of precaution. While users didn’t have their funds in any way affected, nor emptied, Lee Seok-woo, Upbit’s CEO, made a statement in which he said the trading functions on the company’s platform will be temporarily suspended. After a few days, hackers did something else and split the ETH they stolen among a few wallet addresses.
Voices Saying the Funds Were Laundered
A crypto analyst said the hacking group may send small amounts through the rival exchange Huobi to test if they can launder the funds. The Upbit announcement says users should delete their addresses from before, as the wallets associated with them can no longer be used. It also stated that:
“The recovery of ETH sent to previous addresses from now could be long and costly process.”
In spite of the fact that it had lost millions, Upbit assured its users that they will receive a full refund with its corporate assets.