A Sharp Rise in Hacking Attempts on Crypto Exchanges
The South Korean cryptocurrency exchange Upbit has reported a significant increase in cyberattacks. During the first half of 2023, Upbit faced a whopping 159,000 hacking attempts, which is a 117% increase compared to last year and a staggering 1800% surge from 2020.
Upbit is one of the major cryptocurrency exchanges in South Korea, with daily trading volume reaching around $1.2 billion. The company shared this alarming information with Park Seong-Jung, a representative from the People Power Party in South Korea.
Strengthening Security Measures
In response to these growing security threats, Upbit has implemented stronger security measures. The exchange now keeps 70% of its funds in cold wallets, which are considered safer because they are offline. Additionally, Upbit has tightened security for funds stored in hot wallets, which are more vulnerable to attacks as they keep private keys online.
Although Upbit experienced a major security breach in 2019 where $50 million was lost, they have not encountered any security issues since then, according to a spokesperson from Dunamu.
South Korean Government Urged to Take Action
Park Seong-jung has called on the South Korean government to take action in response to the rise in cryptocurrency-related hacks. He emphasized the need for collaboration between the government and cryptocurrency exchanges to enhance security measures and protect traders’ and investors’ investments.
Multiple Exchanges Face Cyber Attacks
Upbit is not the only exchange targeted by cyberattacks. CoinEx, a Hong Kong-based exchange, suffered a massive $70 million hack in September due to a compromised private key. Additionally, Huobi Global’s HTX exchange lost $7.9 million in a separate attack.
As hacking attempts on cryptocurrency exchanges continue to increase, ensuring the security of digital assets has become a significant concern.
Hot Take: Protecting Crypto Exchanges from Cyberattacks
The rise in hacking attempts on crypto exchanges, as seen with Upbit and other platforms, highlights the urgent need for enhanced security measures. Exchanges must prioritize the protection of funds and personal information to safeguard the investments of traders and investors. This requires collaboration between exchanges and government entities, conducting extensive security tests, and implementing robust cybersecurity protocols. As the cryptocurrency market continues to grow, it is crucial to stay one step ahead of cybercriminals to maintain trust and confidence in the industry.
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