It’s not the first time it’s happened. We have already recounted some crypto money robbery on different occasions. Some are very serious. Well, we have a new case to deal with.

An important exchange of crypto coins, or in other words an exchange platform or market that allows the exchange of digital coins for money or other crypto coins, has just reported enormous looting. No less than 48.7 million dollars in Ethereum, the well-known cryptocurrency that rivals Bitcoin, in South Korea.

The company, run by a subsidiary of technology giant Kakao, has notified its users of the theft of 342,000 Ether (ETH) from its portfolio. The event was officially confirmed by Lee Seok-Woo, CEO of the Upbit operator, on November 27.

Plundered more than 48.7 million dollars in Ethereum

Lee Seok-Woo has explained the following in a statement: “At 1:06 PM on November 27, 2019, 342,000 ETH (approximately 58 billion won) were transferred from the Upbeat Ethereum Hot Wallet to an unknown portfolio. The unknown address of the wallet is 0xa09871AEadF4994Ca12f5c0b6056BBd1d343c029”. The message would officially confirm the looting, which would correspond, as we said, to nothing more and nothing less than 48.7 million dollars.

The CEO of the company could only apologize to the users for the damage caused. Also, he explained what measures have been taken after the looting was detected. They say they are working to protect the assets users have in their accounts. The money will be covered directly with the company’s assets, having already transferred the cryptocurrencies in question.

These have gone from what is called hot wallets to cold wallets, with the aim of making them safe. Deposits are expected to take at least two weeks to resume, so users will have to be patient and wait. According to Lee Seok-Woo, they will be informed promptly when they reopen.

On the other hand, and for the peace of mind of the users, it should be noted that the transfers that have recently been made with large amounts have not been labeled as strange. In fact, they have occurred with movements of assets between secure wallets of the exchange itself.

All the affected users have to do is not send cryptocurrency until the platform can not ensure that the movements can be made safely.

The Theft of Crypto Coins: A Common Crime

So far this year, according to a report released by Cipher Trace in the summer, cybercriminals have stolen up to $4.26 billion. This has led to massive losses for investors and, logically, also for users of cryptocurrencies. This would be if the trend continues, the year that could go down in history as the year in which the most frauds have been perpetrated.

Moreover, this same report points to a worrying fact. Bitcoin has become the most commonly used cryptocurrency for cybercrime, drugs, weapons and banking credentials. It is followed by Ethereum, the latest robbery we have reported, and Monero, whose use is now a minority.

Subscribe to Our Newsletter