South Korea’s Upbit, a prominent cryptocurrency exchange, has reported a significant increase in hacking attempts during the first half of 2023. The figures were disclosed by Upbit’s parent company, Dunamu, to South Korean Representative Park Seong-jung of the People Power Party.
Hacking Attempts on the Rise
Upbit faced more than 159,000 hacking attempts in the first half of 2023, marking a sharp rise from previous years. This represents a 117% increase compared to the same period in 2022 and a staggering 1,800% surge from the first half of 2020.
Upbit’s Security Measures
In response to the escalating threats, Upbit has taken measures to bolster its security. The exchange increased the proportion of funds held in cold wallets to 70%, as cold wallets are considered more secure due to offline storage of private keys. Additionally, security measures for funds stored in hot wallets, which are more vulnerable because they store private keys online, have been enhanced.
1/ 🔒 Crypto Deposits Security Thread 🔒
Today’s Upbit incident highlights a crucial aspect that is often overlooked – the security of crypto deposits. While a lot is discussed around private key management & withdrawals security, deposits have a similar attack surface. ⤵️🧵 pic.twitter.com/5NEAyJB63N
— Nass Eddequiouaq (@nassyweazy) September 25, 2023
It’s worth noting that Upbit experienced a $50 million exploit in 2019. However, since then, the exchange claims it has not suffered any security breaches.
Recent Security Incident
Despite efforts to enhance security, Upbit faced a setback in late September when it had to suspend Aptos token services due to a failure to recognize a fraudulent token called “ClaimAPTGift.com,” affecting 400,000 Aptos wallets.
Call for Government Action
South Korean Representative Park Seong-jung acknowledged the overall increase in cryptocurrency-related hacks and called upon the South Korean government to take more substantial measures. Seong-jung emphasized the need for the Ministry of Science and Technology to conduct extensive security tests and investigations in preparation for cyberattacks on cryptocurrency exchanges, where hacking attempts are becoming more frequent. Concerns were also raised about the ambiguity surrounding the role of the Ministry of Science and ICT in overseeing and managing cryptocurrency-related security matters.