UPbit to Fully Cover the Loss of Hacked $51 Million Worth of Ether

    South Korea’s largest crypto exchange lost 340,000 Ether to hack but the crypto market is unaffected, in fact, digital assets are in green. The timing of the hack meanwhile, suggests an inside job.

    Deposits and withdrawals on cryptocurrency exchange UPbit have been halted for at least the next two weeks after the news of South Korea’s largest digital asset exchange losing 340,000 Ether, worth just over $51.3 million broke.

    The exchange released a statement where it said the funds were sent from UPbit’s Ethereum hot wallet to an unrecognized wallet — 0xa09871AEadF4994Ca12f5c0b6056BBd1d343c029. The official announcement reads,

    “At 1:06 PM on November 27, 2019, 342,000 ETH (approximately 58 billion won) were transferred from the Upbeat Ethereum Hot Wallet to an unknown wallet.”

    Following this loss, the exchange has transferred all the cryptocurrencies from its Hot wallet to Cold Wallet.

    The exchange will cover the loss of 342,000 ETH missing from the suspicious transaction.

    Other Exchanges to Freeze the hacked Funds

    After UPbit came clean with its explanation, other exchanges like Binance and Huobi came together to announce that they would work with UPbit and any hacked funds that move to their platform will be immediately frozen.

    Inside Job?

    Crypto transaction tracker Whale Alert published on Twitter about the 342,000 ETH moved from UPbit to an unknown wallet. It further reported a series of major transfers of Tron (1.1 billion TRX), BitTorrent (12.2 billion BTT) and NPXS from the UPbit wallet to an unknown wallet.

    The exchange also transferred Stellar (XLM), OmiseGo (OMG), EOS, and SNT to Bittrex exchange.

    Local reports suggest the individual or group responsible for this loss targeted the exchange during the period when UPbit was moving the crypto funds to its cold wallet.

    As such, it has been suspected to be an inside job but there’s no confirmation of that as of yet.

    In March, UPbit alleged that a phishing scam executed by hackers from North Korea targeted its users.

    This year, UPbit is the second South Korean exchange that lost a large amount of money. Earlier in March, Bithumb, the second biggest crypto exchange lost $13 million which was an inside job.

    Crypto Market Unaffected

    Despite the news of the hack, the crypto market remained unaffected.

    As a matter of fact, earlier in the day Bitcoin price dropped to $6,847 level but after the news broke out, the price jumped to $7,375. Currently, BTC/USD is trading at $7,289, up 2.35%.

    Ethereum is also in the green by 2% in the past 24 hours while trading at $149.

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    AnTy has been involved in the crypto space full-time for over a year now. Before his blockchain beginnings, he worked with the NGO, Doctor Without Borders as a fundraiser and since then exploring, reading, and creating for different industry segments.

    [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


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