Upbit Exchange Resumes Ether Services Months After $49M Hack

Upbit said users will need to create new wallet addresses to resume trading.

Jan 14, 2020 at 1:30 p.m. UTC
Updated Sep 13, 2021 at 12:08 p.m. UTC

South Korea-based Upbit has restarted ether wallet services nearly two months after hackers made off with $49 million of the cryptocurrency.

The exchange recently announced that following an upgrade to its wallet security system, the platform is once more able to support ETH deposits and withdrawals. A tweet indicated the services had become available soon after 09:00 UTC Monday.

Traders will need to create a new wallet address to which ETH held on the exchange will be automatically deposited, the firm said.

On Nov. 26, Upbit confirmed an "abnormal transaction" had resulted in the exchange losing more than 342,000 ETH from its hot wallet, which at the time was worth approximately $49 million.

The exchange transferred all remaining digital assets into cold storage as a precaution. Although user funds had not been affected, CEO Lee Seok-woo said in a statement following the attack that Upbit would suspend all trading functions temporarily.

Days later, hackers divided the stolen ETH among several wallet addresses. One analyst suggested the group may be sending small test amounts through rival exchange Huobi in an attempt to launder the funds.

In its announcement, Upbit requested users delete their previous addresses, reiterating that wallets created before the hack could not be used: "The recovery of ETH sent to previous addresses from now could be long and costly process," the exchange warned.

The Festival for the Decentralized World
Thursday - Sunday, June 9-12, 2022
Austin, Texas
Save a Seat Now

DISCLOSURE

Please note that our privacy policy, terms of use, cookies, and do not sell my personal information has been updated.

The leader in news and information on cryptocurrency, digital assets and the future of money, CoinDesk is a media outlet that strives for the highest journalistic standards and abides by a strict set of editorial policies. CoinDesk is an independent operating subsidiary of Digital Currency Group, which invests in cryptocurrencies and blockchain startups. As part of their compensation, certain CoinDesk employees, including editorial employees, may receive exposure to DCG equity in the form of stock appreciation rights, which vest over a multi-year period. CoinDesk journalists are not allowed to purchase stock outright in DCG.

Trending

1
CoinDesk - Unknown
How the US Can Establish Itself as a Crypto Leader

Regulators have an opportunity to map out thoughtful, strategic policy on stablecoins and beyond.

Regulators have an opportunity to map out thoughtful, strategic policy on stablecoins and beyond.

CoinDesk - Unknown
2
CoinDesk - Unknown
No, the UK Is Not Going to Make USDC and USDT Legal Tender

For “legalize” read “regulate.”

For “legalize” read “regulate.”

CoinDesk - Unknown
3
CoinDesk - Unknown
Thoughts From Davos

The crypto industry showed up in force at the World Economic Forum’s annual meeting.

The crypto industry showed up in force at the World Economic Forum’s annual meeting.

CoinDesk - Unknown
4
CoinDesk - Unknown
Bitso, primer unicornio cripto de América Latina, despide a 80 empleados

El exchange, que tenía más de 700 empleados antes de los recortes, cuenta con cuatro millones de usuarios en la región.

El exchange, que tenía más de 700 empleados antes de los recortes, cuenta con cuatro millones de usuarios en la región.

CoinDesk - Unknown