Key Notes
- The Upbit team has been monitoring any suspicious wallet activity across all wallets by using its own Automatic Tracking Service (OTS).
- The exchange is collaborating with global platforms, blacklisting addresses, and strengthening security at the platform.
- Upbit has also launched a global recovery program offering 10% of the funds recovered to all contributors.
Crypto exchange Upbit has shared the team’s latest efforts in freezing $1.77 million of victims’ funds, as part of the recovery, following a major hack at the end of November. The team froze these funds after detecting an abnormal withdrawal incident involving a Solana-linked wallet.
Upbit Team Vigilant on Hacker’s Movement on Stolen Funds
The Upbit team is staying vigilant over the hacker’s movement of stolen funds, following the $38 million crypto exchange hack in November. It previously detected suspicious outflows, immediately halted deposits and withdrawals, and upgraded its wallet infrastructure.
As part of its security tightening measures, Upbit is using its proprietary on-chain Automatic Tracking Service (OTS) to trace the movement of the stolen funds. Upbit’s asset tracking team conducted round-the-clock monitoring to identify the on-chain movement and related addresses, as shared by a local news publication.
Besides, the team has already blacklisted suspicious addresses and is also collaborating with global exchanges to detect and prevent further transfers. Exchanges worldwide were alerted and asked to freeze any deposits originating from the flagged wallets.
Upbit admitted that there was an internal security vulnerability during the hack. In a customer-first priority, the exchange has already covered the $26 million in stolen funds using its own corporate assets.
Implementing a Reward Program to Recover Assets
Within hours of the hack, Upbit froze $1.56 million of assets. However, with continuous team efforts and cooperation, the number has reached a total of $1.77 million.
To strengthen recovery efforts, the exchange has launched a global recovery contribution reward program. It has invited security experts, crypto exchanges, white-hat hackers, and blockchain analysts to assist in tracking and freezing the stolen assets.
All contributors will receive 10% of the final amount recovered. Speaking on the development, an Upbit representative said:
“Customer assets affected by the attack have already been fully covered by Upbit assets, but we are persistently tracking and freezing them to prevent them from falling into the hands of attackers. We ask for active cooperation from virtual asset exchanges and the blockchain community around the world to create a safe virtual asset ecosystem”.
Upbit said it has resumed deposit and withdrawal services for all assets on Dec. 6, following its wallet system replacement and security enhancements.
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Bhushan is a FinTech enthusiast and holds a good flair in understanding financial markets. His interest in economics and finance draw his attention towards the new emerging Blockchain Technology and Cryptocurrency markets. He is continuously in a learning process and keeps himself motivated by sharing his acquired knowledge. In free time he reads thriller fictions novels and sometimes explore his culinary skills.
