Upbit faced 159,000 hacking attempts in the first half of 2023, a 117% increase from the previous year.
Upbit has taken steps to improve security, but cryptocurrency exchanges remain a prime target for hackers.
A South Korean representative has urged the government to take action and collaborate with exchanges to enhance security.
Recently, the South Korean cryptocurrency exchange Upbit revealed that it grappled with an astounding 159,000 hacking attempts in the first half of 2023. This marks a remarkable surge in cyberattacks on the exchange, witnessing a 117% increase compared to the previous year and a staggering 1800% surge from 2020.
Upbit’s Growing Challenges
Upbit, a major cryptocurrency exchange in South Korea, which handles around $1.2 billion in daily trading, was targeted by an unprecedented number of hacking attempts in early 2023.
The company behind Upbit, Dunamu, shared this concerning information with Park Seong-Jung, a representative from South Korea’s People Power Party.
To counter these security threats, Upbit has taken steps to improve security. They now keep 70% of their funds in cold wallets, which are considered safer because they are not connected to the internet. Upbit has also enhanced the security of funds stored in hot wallets, which are more vulnerable because they keep private keys online.
This isn’t the first time!
Upbit faced a significant security breach in 2019, resulting in a loss of $50 million. However, they have not encountered security issues since then, according to a spokesperson from Dunamu.
Recently, Upbit had to briefly stop its Aptos token services due to a failure to detect a fake token named “ClaimAPTGift.com,” affecting about 400,000 Aptos wallets.
Also Read: Upbit Mistakes Scam Tokens for Real ATP, Warns Users of Price Fluctuations
Rallying for Government Action
Given the rise in cryptocurrency-related hacks, Park Seong-jung has urged the South Korean government to take action. He called on the Ministry of Science and Technology to conduct security tests and assess information security to prepare for potential cyberattacks on cryptocurrency exchanges.
Park stressed the need for collaboration between the government and cryptocurrency exchanges to enhance security and protect traders’ and investors’ investments.
We Have a Larger Problem at Hand
It’s essential to note that Upbit is not the only exchange facing cyberattacks. CoinEx, a Hong Kong-based exchange, suffered a massive $70 million hack in September due to a compromised private key.
In a separate attack on September 24, Huobi Global’s HTX exchange lost $7.9 million.
As cyberattacks on cryptocurrencies increase, ensuring the security of digital assets becomes a significant concern. Investors must take active steps on protecting their funds and investments.
Also Read: Singapore Cracks Down on Money Laundering with New Committee; Plan Laid Out
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