South Korean crypto exchange loses over $50m in cyber attack

UpBit customers will have to wait two weeks before they can access their Ethereum again

South Korea's biggest cryptocurrency exchange, UpBit, is reeling after a major online heist which saw it lose over $50m (£38.7m, €48.4m) of Ethereum.

The company suspended activities late Wednesday after a message from Lee Seok-woo, CEO of company owner Dunamu, confirmed that the cyber attack had been successful,

Seok-woo added that affected Ethereum owners would have their loses covered the company, but that it would be at least two weeks before they could access their crypto.

All the company’s other cryptocurrency has been shifted to an ultra secure cold wallet (one which is not online) for safekeeping.

Cryptocurrency exchanges have been hit several times by cyber attackers in the last few months. Japan-based Bitpoint lost $32m (£24m €29m), while Singaporean company Bitrue had $4.5m (£3.4m, €4m) stolen. Coinbase and Binance have also been targeted.

There is already speculation as to how the theft could have taken place. UpBit said that the attack occurred during a routine movement of funds from a hot to a cold wallet, which has lead some pundits to argue that the thief must have had some insider knowledge. Other observers have pointed out that North Korea has allegedly been behind several recent cyber attacks on crypto exchanges.

What is your sentiment on ETH/USD?

Vote to see community's results!

Rumours of the attack sparked a small drop in the price of Bitcoin, though the Ether price is largely unaffected.

Crypto investors are advised to only buy currency from secure and reliable trading platforms, and also to use a mixture of hot and cold wallets for storage.

FURTHER READING: How do you store Bitcoin?

FURTHER READING: Crypto wallet explained

The material provided on this website is for information purposes only and should not be regarded as investment research or investment advice. Any opinion that may be provided on this page is a subjective point of view of the author and does not constitute a recommendation by Currency Com or its partners. We do not make any endorsements or warranty on the accuracy or completeness of the information that is provided on this page. By relying on the information on this page, you acknowledge that you are acting knowingly and independently and that you accept all the risks involved.
iPhone Image
Trade the world’s top tokenised stocks, indices, commodities and currencies with the help of crypto or fiat
iMac Image
Trade the world’s top tokenised stocks, indices, commodities and currencies with the help of crypto or fiat
iMac Image