South Korea’s largest crypto exchange, Upbit, was hacked on Thursday, resulting in the loss of millions in cryptocurrency. However, the exchange has announced it will cover all losses and fully reimburse its customers. The notorious North Korean Lazarus hacking group is suspected to be behind the attack.
Upbit to Reimburse Hacked Crypto #
The South Korean exchange Upbit confirmed it was hacked on Thursday. In a statement on its website, CEO Oh Gyeong-seok revealed that hackers made off with approximately €26 million in crypto. The majority of this, around €23 million, belonged to customers. A smaller portion of the stolen funds, about €1.4 million, has reportedly been frozen with the help of tracking tools.
Customers need not worry, Upbit stated. The exchange will fully compensate all affected users from its own funds, ensuring that platform users will not suffer any losses.
According to the announcement, the theft was made possible by exploiting a vulnerability in the security of Upbit’s Solana (SOL) wallets. This flaw allowed the attackers to determine the wallet’s private keys, granting them access to transfer the crypto to their own wallets without hindrance.
Measures Taken #
Immediately following the incident, the exchange temporarily halted all deposits and withdrawals to prevent further damage. Upbit reports that the issue has now been resolved, the affected systems have been updated, and security has been further strengthened. The exchange also announced it will implement additional checks and monitoring to prevent future recurrences.
Upbit emphasized that its financial reserves are more than sufficient to cover incidents like this. The exchange is the largest crypto trading platform in South Korea, with a market share of approximately 70%.
North Korean Hacking Group #
South Korean authorities are now investigating who is behind the attack. However, local media are pointing to the notorious North Korean ‘Lazarus’ hacking group as the likely culprit. This group is suspected of being a cyber unit of the North Korean army and is internationally known for its advanced cyberattacks on crypto exchanges.
According to blockchain analysis firm Chainalysis, the Lazarus group is responsible for more than half of all hacked crypto globally. The group is reportedly so successful that its hacking revenues now represent 13% of North Korea’s gross domestic product (GDP). A significant portion of these funds is believed to be used for weapons procurement.