Criminal Attacks on Crypto Entities Continue to Rise in 2023
Since 2020, there has been an alarming increase in criminal attacks targeting cryptocurrency entities, resulting in the loss of billions of dollars to bad actors. This trend has continued into 2023, with attacks on the nascent crypto industry intensifying in recent months.
Crypto Exchanges Under Siege
South Korean-based crypto exchange Upbit reported over 160,000 hacking attempts in the first half of 2023. The company shared this information with the country’s National Assembly through their Science, Technology, Information, Broadcasting and Communications Committee.
This data aligns with findings from Chainalysis and other sources, indicating a growing number of cyber attacks on the crypto industry over the years. Upbit experienced approximately 8,300 attacks in the second half of 2020, which surged to over 34,000 attacks within six months. By late 2021, the number of attacks reached over 90,000.
The upward trend continued in 2022 when Upbit encountered around 73,249 hacking attempts in the first half of the year alone. A similar figure was recorded in the second half, totaling approximately 150,000 hacking attempts.
During the first half of 2023, Upbit faced a significant number of attacks that have resulted in millions of dollars in damages for the company.
South Korea Should Enhance Exchange Security
Upbit has taken steps to enhance its security by relying more on cold hardware wallets that are disconnected from the internet and storing private keys on separate hardware. Since a hacking incident in 2019, no cyber breaches have occurred due to these preventive measures.
Representative Park Seong-Jung from South Korea’s People Power Party urged the country to support crypto exchanges in defending against these attacks. If the current trend continues, Upbit and other South Korean exchanges could face half a million cyber attack attempts.
The financial impact on these companies could be devastating. Representative Park believes that the South Korean government’s role in this situation remains unclear, contributing to the status quo and the challenges faced by crypto exchanges.
Hot Take: Protecting Crypto Exchanges from Increasing Cyber Attacks
The rise in criminal attacks on crypto entities, particularly crypto exchanges, is a growing concern in 2023. Upbit’s experience with over 160,000 hacking attempts highlights the urgent need for enhanced security measures within the industry. With billions of dollars lost to bad actors, it is crucial for governments and regulatory bodies to step up and support crypto exchanges in defending against cyber attacks. The South Korean government’s ambiguous stance on this issue only exacerbates the problem. To ensure the safety and stability of the crypto industry, collaborative efforts are necessary to combat this rising threat.
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