For some Ethereum HODLers who kept their precious Ether on South Korean cryptocurrency exchange Upbit, it wasn’t a good day at all yesterday, even though the Ether price bounced back to over $150.
The price wasn’t the problem, though. Upbit was hacked & the hackers got away with 342,000 ETH, the equivalent of $51.3 million at a price of $150 per coin. The announcement was made on November 27, 2019, at 6 PM South Korean time, almost five hours after the suspicious transfer from the Upbit hot wallet to an unknown wallet here.
As a result, the South Korean cryptocurrency exchange was forced to freeze any incoming deposits or outgoing withdrawals. Moreover, all cryptocurrency assets were moved to cold wallets.
The CEO of Danamu Inc. – the company behind Upbit – Lee Seok-woo gave assurances to all Upbit users that the 342,000 ethers stolen will be covered by the exchange’s own assets in a timely manner. The deposits & withdrawals will be resumed in approximately two weeks, as per this notice translated by Price Coin Network.
This is the second hack a South Korean cryptocurrency exchange is ‘experiencing’ firsthand, this year. In March 2019, Bithumb allegedly lost almost $20 million, due to ‘an inside job.’ Overall, it is the seventh cryptocurrency exchange since the start of the year with total estimated losses of over $166 million.
Poloniex Walks The Decentralization Path
Fortunately, cryptocurrency exchange Poloniex was NOT one of the hackers’ targets. The exchange established in 2014 is currently on a different path that should at least suppress many of the thefts happening these days.
Poloniex has just acquired TRXMarket, the first TRON-based decentralized exchange that operates on the TRX blockchain. According to the press release, TRXMarket boasts with a seven-day transaction volume of $30 million and has been immediately renamed to Poloni DEX which can be found here.
It is interesting to find out how the actual negotiations went through since it is known Tron founder Justin Sun bought a stake of the cryptocurrency exchange Poloniex last month.
Who knows, maybe it went this way:
How do you feel about these cryptocurrency exchange hacks happening as of late? There are some conspiracy theories out there mainly related to market manipulation. Do you believe them? Share your thoughts in the comment section below.
Images courtesy of Poloni DEX & Needpix.com.