South Korean based cryptocurrency exchange Upbit has announced the suspension of activities on its platform over the withdrawal of $50.9 million worth of crypto assets suspected to be a hack attempt, a Korean news outlet affirms.
Following the withdrawal of 60 billion Korean won (circa $50.9 million) to an anonymous wallet, Upbit announced server inspection, suspending crypto deposit and withdrawal activities.
The $50.9 million funds were transferred at about 20:20 pm (GMT+9) and has been halted by the exchange to prevent huge loss of funds.
The transaction, according to the news outlet, was made in two batches. W56 billion ($47 million) worth of Ethereum was first transferred to the unknown wallet, before another W4 billion ($3.3 million) in BTT was later moved. Upbit noted that its inspection team noticed the transactions.
According to an official of the exchange, the team is still unclear if the exchange had been hacked, hence called for server inspection and shutdown of activities.
“There is a disagreement as to whether the exchange has been hacked or moved from the exchange side to the cold wallet. Is being raised,” the official said.
The case seems quite abnormal as they are not sure if the money was moved to a cold wallet. Occasionally, exchanges transfer money to cold wallets for the safety of users’ assets.
Due to the worrisome transaction, Upbit opted for a scheduled inspection, notifying users that withdrawal and deposit will be temporarily disarmed.
According to Korean Naver news platform, the matter is currently being investigated by Korea Internet Security Agency (KISA). KISA is inspecting the transaction to affirm if Upbit exchange is under attack.
Various crypto hack activities have been linked to exchanges in the Korean territories. In March, Coindesk reported that Korean exchange Bithumb lost 20.2 million XRP, worth $6.2 million, into the hands of hackers.