Upbit reports $36 million loss in solana hot wallet breach

[Oshosondy]

Upbitis the South Korea largest exchange, the exchange was hacked recently which led to the stolen of $36 million on solana blockchain across many tokens like meme coins such as Bonk (BONK), Moodeng (MOODENG), Official Trump (TRUMP), and decentralized finance tokens such as Sonic SVM (SONIC), Access Protocol (ACS), Jito (JTO), Solana (SOL), and Raydium (RAY), among other tokens such as Pudgy Penguin (PENGU). The list also includes Circle’s USD Coin (USDC).

The exchange noticed, halt withdrawal and move the remaining coins to a cold wallet. The CEO of Dunamu, Upbit’s parent, said the exchange will fully reimburse customers according to the news.

https://decrypt.co/350196/south-koreas-upbit-36-million-loss-solana-hot-wallet-breach

The halt of withdrawals is good to avoid further losses but some people will not see the time withdrawal was halted to be convenient.

[julerz12]

A suspected hack, meaning, it could be something else... 
Bybit, CoinCheck, FTX, DMM, Wazir, KuCoin, BitMart, BitGrail, CoinBene, and, now, ladies and gents! Let's welcome the new addition to the list, Upbit! 
Seriously, though, how long does it take these centralized exchanges to learn how to be impenetrable to exploits or "hacks"? Millions of dollars in funding, and yet still cracked like a biscuit?

Well, at least this one promised to refund the stolen funds to its users.

[albon]

A suspected hack, meaning, it could be something else... 
Bybit, CoinCheck, FTX, DMM, Wazir, KuCoin, BitMart, BitGrail, CoinBene, and, now, ladies and gents! Let's welcome the new addition to the list, Upbit! 
Seriously, though, how long does it take these centralized exchanges to learn how to be impenetrable to exploits or "hacks"? Millions of dollars in funding, and yet still cracked like a biscuit?

Well, at least this one promised to refund the stolen funds to its users.

This is why cold storage and self-custody are so important. As we know Upbit isn't a small platform; it's the largest crypto exchange in South Korea and needs no introduction. I think that in a few years, many other prominent names will be added to your list.

It's clear that despite all the security measures implemented by their experts, they have become like paper shields against hackers.. As losing $36 million in less than 24 hours is a huge amount for any platform. Let's wait and see how they compensate the affected customers.
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I advise everyone to be cautious of scammers.. I just encountered one while following the Upbit hashtag on the X platform urging people to direct message him to help trace and recover their crypto. I hope everyone avoids these scammers and their recovery services and waits for official updates through Upbit's official channels.

[Potato Chips]

No custodial service is truly safe.

In 2019, upbit was also hacked on November 27th. An interesting coincidence I gotta say. Though, the articles only did say it was detected today at 4AM so there's a possibility the hack started before 27th.

I'm just glad they'd be able to reimburse their users, and hopefully in a timely and reasonable manner. Looks like they also reimbursed folks when they were hacked on 2019.

Gotta say, I feel like I've seen a lot of local korean exchange getting exploited over the past years.  😅

[BitMaxz]

No custodial service is truly safe.

In 2019, upbit was also hacked on November 27th. An interesting coincidence I gotta say. Though, the articles only did say it was detected today at 4AM so there's a possibility the hack started before 27th.

I'm just glad they'd be able to reimburse their users, and hopefully in a timely and reasonable manner. Looks like they also reimbursed folks when they were hacked on 2019.

Gotta say, I feel like I've seen a lot of local korean exchange getting exploited over the past years.  😅

Well, any online platform or exchange or even most secured online wallets are always visible to all attacks. Our assets on the exchange are not always safe on any of these exchanges unless we move them to a cold storage wallet where there's no internet and they're far from online attacks.

It looks like they are being hacked every cycle? Weird, but it looks like an inside job?

[albon]

Update:

Upbit will move most of its users' assets to cold storage (offline), raising the proportion to 99%, while reducing the share of hot wallets to 0% following this hack that occurred in one of its online hot wallets, which marks the second hack so far.

This means that users' balances at risk will be extremely limited in the event of any new breaches in hot wallets, and it represents a major security and a significant shift adopted by a large platform like Upbit to protect users' funds.

Sources:
[1] https://x.com/WuBlockchain/status/1998641139507933508
[2] https://upbit.com/service_center/notice?id=5844&view=share
[3] https://www.cryptopolitan.com/upbit-shift-most-user-assets-to-cold-wallets/

[rat03gopoh]

[2] https://upbit.com/service_center/notice?id=5844&view=share

In fact, Upbit has the lowest hot wallet ratio among domestic digital asset exchanges. According to data released by Democratic Party lawmaker Heo Young, while other exchanges maintained a cold wallet ratio of 82-90% as of the end of June, Upbit had the highest at 98.3%.

I'm curious about the subsequent withdrawal process. Are there any additional steps or policies in place if the liquidity in the hot wallet can't cover a large number of withdrawals? I think this decision also takes away some of their advantages, especially regarding processing speed.

[Z-tight]

I think this decision also takes away some of their advantages, especially regarding processing speed.

That is actually something to consider, but i am sure the exchange has all of this well-thought-out. However, i will choose security of funds over processing speed, and i am sure there are a lot of people who would agree with me on this. Centralized exchanges ought to do whatever it takes to secure customers funds. They make a lot of money, so it is on them to spend it or implement any strategy to ensure hackers stop stealing from them at will.