Binance Responds to Upbit Hacking Allegations
In a recent development regarding the Upbit hacking incident, cryptocurrency exchange Binance has refuted allegations that it did not respond in a timely manner to requests for freezing compromised funds. A Binance representative, in a statement provided to Cryptonews, characterized these claims as misleading and confirmed that the company acted quickly to assist in freezing transactions associated with the hack. The spokesperson emphasized that the exchange’s security and investigation teams promptly worked to mitigate the impact of the incident after identifying it.
Investigation Findings
The rebuttal comes in response to assertions from South Korean investigators, who indicated that Binance had only managed to freeze a fraction of the hijacked assets following the security breach that occurred on November 27. Reports suggest that law enforcement officials believed that merely 17% of the flagged assets were successfully frozen. The investigation revealed that the hackers deployed various tactics, including the use of multiple wallets and asset swaps, complicating the recovery efforts by obscuring the trail of the stolen funds. Authorities stated that a substantial portion of the laundered money eventually circulated towards Binance’s service wallets.
Upbit’s Security Enhancements
In the wake of the hack, Upbit, which suffered a loss of approximately $30 million, is taking significant measures to enhance its security protocols. The exchange’s operator, Dunamu, announced plans to move nearly all customer funds into cold storage, increasing their offline asset ratio to 99%, well above the national standard of 80% for cryptocurrency exchanges in South Korea. Previously, Upbit maintained about 98.33% of its assets in cold storage, marking the highest level among domestic rivals, but is now accelerating their security overhaul following the breach.
Ongoing Investigations
Authorities in South Korea are investigating the incident, and preliminary intelligence reportedly suggests a link between the attack and the notorious Lazarus Group, which is believed to be tied to North Korea. As Binance continues to liaise with law enforcement and monitor the situation, it reinforces its commitment to swift and effective action in safeguarding user assets.
