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S Korean Exchange Upbit Denies Hack Rumor

Hack Security

South Korea Upbit

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Tim Alper

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Tim Alper

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Tim Alper is a British journalist and features writer who has worked at Cryptonews.com since 2018. He has written for media outlets such as the BBC, the Guardian, and Chosun Ilbo. He has also worked...

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Last updated:

June 26, 2023

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Upbit, one of South Korea’s biggest exchanges, has denied rumors spreading this week on Telegram that it fallen victim to a hacking attack.

Concerns had grown among South Korean cryptocurrency investors after keen-eyed community members noticed that Upbit had moved massive amounts of crypto-funds over the past three weeks, reports the Seoul Economic Daily.

News of the move led many to assume that the exchange, which has supposedly never suffered a hack, was attempting to cover up evidence of a security breach. A Telegram channel called “Upbeat FUD (Fear, Uncertainty and Doubt)” appeared, and quickly garnered attention from much of the country’s crypto-community.

However, Upbit says it moved its funds as part of a network upgrade as it rolls out its Open API system, a platform that developers can use to customize Upbit’s API.

Upbit has described the hacking rumors as “false,” and stated that the token movement was “part of migration efforts for mainnet support.” The company added that its transfers “were done in a secure, managed environment.”

The Seoul Economic Daily quotes an Upbit official who called the issue a “misunderstanding,” and asserted, “Upbit keeps over 70% of its assets in cold wallets, per the recommendations of the Korea Blockchain Association. Our customers’ assets are always handled safely.”

As reported, the fallout from USD 32 million hack on South Korean major exchange Bithumb has dealt a major blow to investor confidence. Media analysts and web users alike have concluded: “Only Upbit is left.”