Hacking Attempts on Upbit Surge
According to recent reports, South Korea’s leading cryptocurrency exchange, Upbit, has become the target of multiple hacking attempts. Data provided by Dunamu, the firm that owns and operates Upbit, reveals a staggering 117% increase in hacking attempts during the first half of 2023, compared to the same period last year. In fact, there were a total of 159,061 attempted cyber intrusions on Upbit, more than double the number of cases from the previous year (73,249).
This surge in hacking attempts is alarming, as it signifies a growing threat to the security of Upbit’s platform. The figures show an astonishing 1,800% surge in hacking attempts compared to the same period in 2020. The progression of these attempts is evident, with the number of cases steadily increasing since the latter half of 2020.
“The severe nature of hacking incidents targeting major exchanges like Upbit cannot be underestimated.”
– Representative Park Seong-jung
To strengthen security measures, Dunamu has implemented a strategy of keeping over 70% of assets in cold wallets. Cold wallets are offline storage devices that offer enhanced security, as opposed to hot wallets, which are susceptible to hacking due to their online storage of private keys.
Upbit aims to fortify the protection of user assets by employing multiple structures for hot wallets instead of relying on a single framework. This comprehensive security approach aims to mitigate the risk of hacking attempts and safeguard user funds.
Concerns and Recommendations
Representative Park Seong-jung emphasized the need for comprehensive white mock hacking tests and information security assessments. These tests should be conducted not only for virtual asset exchanges like Upbit but also for critical sectors such as hospitals and subways, which handle large amounts of personal information. By proactively assessing and addressing vulnerabilities, the Ministry of Science and Technology can better prepare for cyber attacks that target these sectors.
“With the increasing frequency of virtual asset hacking domestically and internationally, the severe nature of hacking incidents targeting major exchanges like Upbit cannot be underestimated.”
– Representative Park Seong-jung
Growth in South Korea’s Virtual Asset Market
Despite the alarming number of hacking attempts and the significant amount of money lost by Upbit, the virtual asset market in South Korea has witnessed substantial growth. The Financial Services Commission (FSC) reports a 46% increase in the total market cap, reaching $21.1 billion in the first half of 2023 compared to the previous six months.
South Korean virtual marketplace operators have also experienced impressive growth, with operating profits rising by 82% to $168 million. Deposits in crypto exchanges have increased by 11% to about $3 billion. Although the average daily transaction value at the 26 exchanges has slightly decreased by 1.3% to $2.1 billion, the overall market trend remains positive.
Remarkably, the number of individual and corporate crypto traders has decreased, but the market still boasts 6.06 million traders. Most traders fall into the 30s age group, with over 67% holding virtual assets valued at less than 500,000 won.
South Korea has become a hub for cryptocurrency trading, with 622 types of cryptocurrencies being traded, including popular options like Bitcoin, Ethereum, Ripple, and Dogecoin. The market has also seen the listing of 169 new crypto coins, although 115 coins underwent temporary trading suspensions for various reasons.
