Hackers and Damage Done to Upbit

Endy Callahan

Binance had no any other way – all they could do was to freeze funds. The damage the exchange has experienced reaches fifty million USD. Crypto exchanges sometimes face this sort of issue. Hackers keep trying to find new ways of stealing people’s money. Twitter users are currently discussing this news, trying to foresee the company’s further steps. Most are sure that after a day or two it will be clear how hackers gained access and what other damage they manage to do to the exchange and its customers.

A couple of days ago, the system sent a warning addressing Binance and explaining the tam what actions their representatives should take to protect their platform. This sort of problem has previously arisen and the company knows what they need to do in such cases – they froze funds that were related to the hack. This time the cybercriminals transferred one hundred and thirty-seven ETH. The address belonged to the hacker gang called Upbit. All in all, hackers managed to transfer approximately twenty-seven thousand USD to their wallets. The sum will probably different after a more thorough investigation and analysis.

Preventative Measures and Protection

The representatives of the firm immediately got in touch with all the major mass media sources and reported that they had successfully frozen the assets. Binance guarantees that the company will return the money in the nearest future hopes that customers will stay patient and understanding. It took no more than thirty minutes for the criminals to transfer the funds. Luckily, Binance blocked the address and performed the necessary preventative measures.

As we can see, even though the number of hackers is still great and their technologies keep developing, exchanges do all possible to create and apply advanced tools that would help them fight online thefts. Nowadays, exchanges tag addresses that they think may be related to crime. If operators notice funds reaching those accounts, they can freeze the money, not let it leave the servers, or reach the hackers.

Although officials all around the globe cooperate and keep track of the attackers, money laundering still occurs. The Upbit hack is one of such examples – the owners of the wallets quickly transfer the funds via multiple wallets. They do this to hide their crime and make the investigation and tracking process more complicated.

Media Sources Spread the News

The mentioned group has laundered more than three million USD using exchanges. The list includes Bitfinex as well as Binance. As a rule, the hackers send small amounts, which makes them look less suspicious. Last year, the money they stole was bigger – almost fifty million USD. The purposes of the latest money transfer are not yet clear. Experts believe that the criminals were testing the system before sending greater amounts. Fortunately, even the funds they sent last time didn’t go unnoticed.

Once this kind of incident occurs, crypto traders from every country get in touch with each other to share their opinions and find out as much as possible. The details of the investigation will soon be on many sites and forums. The good news is that what happened this week will not affect customers and they will not lose their assets – the frozen money will not disappear from their wallets and the exchange will resume its regular activities offering services. How much the officials have already found out is now visible hence there are hundreds of tweets where people inform each other about the issue and how the authorities solve it.