Jul 262 mins read

Massive Ethereum Withdrawal Worth US $50 Million From Upbit

Cryptocurrency exchange Upbit suffers massive Ethereum theft

Massive Ethereum Withdrawal Worth US $50 Million From Upbit

Reports suggest that a massive withdrawal of 340,000 Ethereum (worth up to $50 million USD at the time of writing) has been transferred from Upbit, a South Korean cryptocurrency exchange, to an unknown wallet address. Whale Alert, a cryptocurrency tracking website, issued an alert about the same. There were also 17 outbound transactions with a total of $106 million USD.

Upbit Upbit Exchange Office

Upbit CEO, Lee Seok-woo confirmed that only the first large withdrawal was an abnormal transaction. Upbit will use reserve funds for compensation, and they have started relevant work. All the cryptocurrencies in the hot wallet of Upbit have been transferred to the cold wallet, and withdrawal services are expected to resume in two weeks.

Ethereum Ethereum Blockchain

Xiamen SlowMist Security Team noted that the incident was related to the Advanced Persistent Threats (APT) attack that was active before. According to SlowMist, this kind of attack lurks long-term, targeting a large sum of funds, and then steals them in one go. Upbit discovered such attacks earlier this year from North Korea. However, SlowMist pointed out that "We cannot rule out the possibility of an insider. The stolen Ethereum is from Upbit’s hot wallet, and the cold wallet should be temporarily safe."

Cryptocurrency Market Cryptocurrency Market

Joseph Young mentioned that the hacker attacked when Upbit transferred the cryptocurrency to the cold wallet. Hence, the probability of there being an "insider" is higher.

MICA Research, a cryptocurrency research institution, said that some people are worried that the stolen money will be sold to the market at zero cost, causing the coin price to fall again. But, MICA confirmed that the "hacker's method is to transfer $50 million worth of Ethereum from Upbit wallet to a single wallet, which is then marked by all exchanges as 'Upbit Hacker.'" This means that the Ethereum cannot be transferred to any major exchange and deposited. This Ethereum is frozen in the market and cannot be traded.

The market is celebrating the reduced supply of Ethereum.

Ethereum Coin Ethereum Coin

Market Update

Today, the market has increased slightly, driving Ethereum (ETH) to rise by 3%.

ETH Market Graph

This graph shows the recent market trend for Ethereum (ETH). As you can see, there has been a small increase today, which is good news for investors. Keep an eye on the market for any further developments.