Upbit Resumes Ether Deposits and Withdrawals Months after 340,000 Eth Hack

Popular South Korean cryptocurrency exchange Upbit has reopened ether deposits and withdrawals months after suffering a security breach that saw hackers take over 340,000 ETH from its wallets.

According to the cryptocurrency exchange’s announcement, its ETH wallet’s security system has been updated and it will now going to once again support deposits and withdrawals in the cryptocurrency. Users will, however, have to create a new wallet address to deposit ETH into the cryptocurrency exchange. After creating it, ether held on Upbit will automatically be deposited there.

The exchange warned users not to deposit funds on their old wallet addresses as the “recovery of ETH sent to previous address from now could be long and - costly process.” Instead, Upbit asks users to delete their old addresses.

As CryptoGlobe reported, the South Korean exchange was hacked back in November 2019, when it found a total of 342,000 ETH, then worth approximately $49 million, were transferred from its hot ether wallet into an unknown wallet. As soon as the exchange noticed the breach, it moved all cryptoasset in its hot wallets to cold wallets, and froze deposits and withdrawals.

The hackers quickly started moving the funds to various other addresses, presumably in an attempt to confuse blockchain sleuths and mask the real origin of the funds. The original address the ETH was moved to now holds around $10 worth of the cryptocurrency, although some addresses associated with the hackers still hold large amounts.

Some speculate the hackers have been sending small test transactions to other cryptocurrency exchanges in an attempt to launder the stolen funds. While those behind the security breach have never been fund, South Korean intelligence officials have blamed North Korean hacking groups for hacks on its exchanges.

Featured image via Pixabay.