South Korean Exchange Upbit Targeted by Hackers Over 159,000 Times in First Half of 2023
The operating firm of South Korean cryptocurrency exchange Upbit, Dunamu, has reported that the exchange has been targeted by hackers on more than 159,000 occasions in the first half of 2023. This represents a significant increase of 117% compared to the first half of 2022 and an astounding increase of 1,800% compared to the first half of 2020. Upbit is one of the largest cryptocurrency exchanges in South Korea, with a daily trading volume of approximately $1.2 billion.
Increased Security Measures
To combat hacking attempts and enhance security, Upbit has increased the proportion of funds held in cold wallets to 70%. Additionally, the exchange has implemented stronger security measures for funds stored in hot wallets. Hot wallets are more susceptible to hacking as their private keys are stored online, unlike cold wallets where keys are kept offline on external devices such as hard drives and USBs.
Previous Security Breach and Recent Incident
In 2019, Upbit experienced an exploit that resulted in a loss of $50 million. However, since then, no further security breaches have occurred. Nevertheless, in late September, the platform had to suspend Aptos token services after failing to recognize a fake token called “ClaimAPTGift.com,” which affected 400,000 Aptos (APT) wallets.
Call for Government Action
Representative Park Seong-jung from South Korea’s People Power Party acknowledged the increasing number of cryptocurrency hacks and urged the government to take more action. Seong-jung emphasized the need for large-scale mock tests and investigations into information security conditions at virtual asset exchanges to prepare for frequent cyber attacks. He also criticized the Ministry of Science and Technology for its ambiguous role in managing and supervising these exchanges.
Other Exchange Hacks
In September, several other cryptocurrency exchanges were targeted in hacking incidents. CoinEx, a Hong Kong-based exchange, suffered a $70 million hack due to a compromised private key. The affected users will be compensated for their losses. Huobi Global’s HTX exchange also experienced an exploit resulting in a loss of $7.9 million.
Hot Take: Upholding Security Measures is Crucial for Cryptocurrency Exchanges
The recent increase in hacking attempts on Upbit and other exchanges highlights the critical importance of maintaining robust security measures in the cryptocurrency industry. As hackers become more sophisticated, exchanges must prioritize the protection of user funds through measures such as cold wallet storage and enhanced security protocols. Additionally, government authorities need to play an active role in conducting tests and ensuring information security to prevent cyber attacks on virtual asset exchanges. By addressing these challenges, the industry can continue to grow with trust and confidence.
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