Upbit Upgrades ETH Wallet Security Following $50M Hack

By January 14, 2020 Ethereum
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Upbit Upgrades ETH Wallet Security Following $50M Hack
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South Korean crypto exchange Upbit has reopened Ethereum deposit and withdrawal services following the attack that resulted in the theft of around $50 million worth digital currencies.

According to the official announcement, the digital asset exchange has updated its Ethereum wallet’s security system and has introduced new addresses for deposit. With this, previously used addresses became obsolete.

Deposit & withdrawal of #ETH is now available. New deposit address is required. Thank you for your patience. more info at : https://t.co/ujW2ajsd5f pic.twitter.com/Xuqf6NTHCq

Upbit was hacked at the end of last November, resulting in the theft of 342,000 Ether, then worth around $50 million. The hot wallets of the exchange were compromised by hackers and thus the platform suspended all deposits and withdrawals until now.

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Following the hack, the platform transferred all its holdings from the hot wallet platforms to much secure cold wallets.

The South Korean exchange last week enabled similar services for – Litecoin, Ripple, and EOS. Given the attack on Ethereum wallets, the exchange has taken extra precaution for the security of its wallets.

“A new wallet system has been adopted for deposit and withdrawal cryptocurrencies,” Upbit stated. “It is difficult to specify whether to open or withdraw items one by one or all at once in the future.”

Despite the loss in millions, the exchange assured a full refund to its users with its corporate assets.

Struggling for proper regulations

Meanwhile, the country’s authorities are pushing to bring regulations for the wild crypto industry. Multiple crucial bill drafts are in the pipeline for approval from the lawmakers.

However, multiple agencies are struggling to properly impose taxation on crypto earnings. Earlier this month, the Ministry of Finance and Strategy clarified that the country will not tax on earnings from digital asset trading under the current laws.

Despite the lack of any assessment standard for crypto businesses, the tax authority of the country last month slapped Bithumb with $69 million in withholding taxes.

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