Korean Crypto Exchange UPbit Lost 342,000 Ether Following Hack

South Korean cryptocurrency exchange UPbit — run by a subsidiary of Korean tech giant Kakao — has been hacked, losing 342,000 Ether (ETH), around $50 million from its hot wallet.

The news has been confirmed by Lee Seok-woo – CEO of Upbit’s operator, Dunamu – via an official statement written on November 27th. The statement explained that the exchange had detected an abnormal transaction from its hot wallet to an unrecognized wallet, which led to an outflow of 342,000 ether (ETH). The exchange did not specify whether it had been hacked.

The statement read as follows:

“At 1:06 PM on November 27, 2019, 342,000 ETH (approximately 58 billion won) were transferred from the Upbit Ethereum Hot Wallet to an unknown wallet. Unknown wallet address is 0xa09871AEadF4994Ca12f5c0b6056BBd1d343c029.”

Following the incident, the exchange apologized to users for any inconveniences caused as the CEO had laid out several measures taken as a precaution. Respectively, the exchange transferred all cryptocurrencies from its hot wallet to a cold wallet and said the loss will be covered by its own corporate assets.

Meanwhile, withdrawals and deposits have already been suspended as a precaution. Later on, Upbit said it will take at least two weeks for deposit and withdrawal services to be back to normal, with Lee Seok-woo promising to inform users as soon as they reopen.

According to Whale Alert – a Twitter service that monitors blockchain transactions – the lost ETH worth $49 million at press time, was sent from Upbit’s wallet to an unknown ethereum address starting with 0xa09871 about 04:00 UTC on Wednesday.

About 30 minutes later, Upbit announced that it had temporarily suspended withdrawals and deposits due to server maintenance. Subsequently, the massive withdrawal alerts did raise suspicions, with several people on social media calling it a hack.

Whale Alert, in fact, noted several withdrawals taking place via UPbit, involving other cryptocurrencies and tokens as well, such as Tron (TRX) and BitTorrent (BTT), amongst others. In fact, more than $100 million worth of multiple cryptocurrencies have been sent out from Upbit today.

However, the exchange stated that only ETH holdings had been affected, and all other recent large-scale transactions were related to the exchange moving assets between hot and storage facilities to prevent further losses.

UPbit’s hack marks this year’s eighth breach, and the total amount stolen from cryptocurrency exchanges to date now stands at around $1.44 billion, according to data.

Meanwhile, Upbit isn’t the only South Korean exchange to have suffered loss. Earlier this year, Bithumb – the second biggest cryptocurrency exchange in South Korea, fell victim to an inside job. According to previous reports, it lost about $13 million in March 2019. In total, the exchange had suffered three major security breaches. Last year, Coinrail was hacked for $40 million.