On Wednesday the 27th of November 2019, Upbit announced they suffered a hack resulting in a loss of $50m USD in Ethereum. Over 342,000 ETH was transferred from an address with a suspiciously high gwei rate which isn’t typical at all for exchange transfers. Speculation arose before Upbit officially confirmed the hack.
Upbit went on to state in a press release, “To ensure that your assets are (un)harmed, 342,000 ETH transferred to unknown wallets will be covered by Upbit assets. We’re working on it, and (We’ll) tell you as soon as I’m done.” This quote has been edited slightly due to some translation errors from the original post.
While it’s commendable to see Upbit cover the losses their Customers may face, it raises further questions around how “the most trusted cryptocurrency exchange” can be hacked without detection and so blatantly at that. We’re sure to keep you updated with any developments as this story continues.
Rumors that Upbit had been hacked started when articles circulated on Twitter and exchange addresses were checked and double checked. Popular Twitter user @DoveyWan investigated the rumor 2 hours before the official announcement was made. Bitcoin and Ethereum both saw large sells shortly before and after the news broken seeing as with enough evidence, it may have been obvious to a few.