The shocking statistics show that the number of people affected has risen at a staggering pace, exceeding double the numbers recorded in the first period of 2022. It also witnessed an astounding 1,800% increase when compared to the same period in 2020 as reported by Dunamu.
Upbit which is an South Korean cryptocurrency exchange, was the victim of hacking attempts that targeted more than 159,000 accounts in the first quarter of 2023, as per its operator.
These shocking figures were made public by Dunamu the company who holds the reins of Upbit and was later relayed the information to South Korean Representative Park Seong-jung of the People Power Party, as reported in a story by the South Korean-based Yonhap News Agency dated October 9.
The report shows a staggering increase of 117% from the data in the first half of 2022. There is also an incredible increase of 1,800% when compared with the same timeframe in 2020.
Upbit is a pillar of South Korea’s top cryptocurrency exchanges. It boasts the highest volume of trading during the day that is estimated to be around $1.2 billion, as per CoinGecko. Other popular exchanges on South Korea include Gopax, Bithumb and Coinone. South Korean landscape include Bithumb, Coinone, and Gopax.
As a proactive response to attempts to hack and to improve protection, the Dunamu platform has raised the percentage of funds stored in cold wallets which now accounts for 70 percent. Additionally, Upbit has bolstered its security measures for money transferred into hot wallets.
It is important to note the fact that wallets with hot temperatures are much more vulnerable to hacks than their cold counterparts, principally because of their online backup of keys contrary to offline storage that is available on USB drives or external HDDs. USBs used for the second.
Incredibly, Upbit endured a $50 million security breach in the year the year 2019. In the time since that event, Upbit has remained unscathed with no security breach, as verified by a Dunamu spokesperson in a statement sent to Yonhap.
“After the security incident that occurred in 2019 we took an array of strategies to prevent repeat incidents, including Hot wallets’ distribution as well as operation. We are proud to say that no cyber-attack has damaged the security of our systems.”
However, in the latter part of in September Upbit had to stop the Aptos service for tokens. This was in result of the platform’s inability to find a fraudulent token with the name “ClaimAPTGift.com,” which had already amassed an impressive 400000 Aptos.
Seong-jung While acknowledging the growing rate of hacks targeting cryptocurrency in the field, called on to the South Korean government to take more strenuous steps.
“The Ministry of Science and Technology must embark on comprehensive mock tests and investigative efforts to evaluate the state of information security, preparing for the incessant onslaught of cyberattacks targeting virtual asset exchanges.”
The official added that “The Ministry of Science and ICT’s role in overseeing and managing these exchanges remains ambiguous.”
Cointelegraph has reached out to Upbit for feedback, but was not received an immediate response as of the time of this report.
While crypto exchanges suffered an avalanche of attacks during this month in September. Particularly the an exchange based in Hong Kong CoinEx was the victim of an attack worth $70 million, due to the loss of one of the company’s private keys. CoinEx has assured customers of compensation sufficient for the losses they suffered.
A separate event Huobi Global’s HTX exchange suffered losses of up to $7.9 million during the September 24th incident.