Upbit’s Cybersecurity Challenges
Upbit, one of South Korea’s largest cryptocurrency exchanges, faced a staggering 159,000 hacking attempts in the first half of 2023, according to reports from Yonhap News Agency. This figure represents a 117% increase compared to the first half of 2022 and an astonishing 1,800% increase compared to the second half of 2020. The exchange has been targeted by hackers over the years, most notably suffering a $50 million hack in 2019.
To combat these security breaches, Upbit’s parent company Dunamu implemented various measures, including increasing the percentage of funds stored in cold wallets by 70%. Cold wallets are considered more secure because they store private keys offline. In contrast, hot wallets, which keep keys online, are more vulnerable to hacking attempts.
Rising Cryptocurrency Hack Attempts
The surge in hacking attempts on Upbit and other cryptocurrency exchanges in South Korea has raised concerns. Representative Park Seong-jung has called on the South Korean government to take significant action in addressing this issue. He suggests conducting large-scale mock tests and assessing information security conditions to better prepare for cyber attacks targeting virtual asset exchanges.
In September 2023 alone, several crypto exchanges suffered significant losses due to hacks and scams. A total of $332 million worth of crypto assets were stolen during that month. Exploits accounted for the majority of the stolen funds, with over 98% ($329.8 million) attributed to this type of attack.
Hot Take: Strengthening Cybersecurity Measures
The increasing number of hacking attempts on cryptocurrency exchanges highlights the urgent need for stronger cybersecurity measures. Exchanges like Upbit must remain vigilant and continuously enhance their security protocols to protect user funds.
Additionally, governments and regulatory bodies should collaborate with exchanges to establish comprehensive cybersecurity frameworks. By conducting regular mock tests and evaluating information security conditions, the industry can better defend against cyber attacks and safeguard the interests of crypto investors.
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