Upbit, South Korea’s leading cryptocurrency exchange, experienced a staggering number of hacking attempts in the first half of this year, according to a regulatory filing by its parent company, Dunamu. The exchange, known for its substantial trading volumes and the speculative rallies it attracts, was targeted nearly 160,000 times by hackers, translating to an average of 879 attempts daily.
Dunamu disclosed these findings in a report submitted to Rep. Park Seong-jung of the Science, Technology, Information, Broadcasting, and Communications Committee of the National Assembly. This surge in hacking attempts represented a significant increase, being 2.17 times higher than the same period in the previous year, which recorded over 73,200 cases.
Although the specific methods employed by the attackers weren’t detailed, common tactics such as Distributed Denial-of-Service (DDoS) attacks and email phishing could likely have been among the arsenal deployed to infiltrate the exchange. DDoS attacks, in particular, involve overwhelming a server with excessive internet traffic, rendering online services and websites inaccessible to users.
Upbit’s popularity has soared, notably following a U.S. court’s ruling that the sale of XRP on exchanges didn’t constitute investment contracts. This decision led to a surge in XRP trading volumes on Upbit, with the exchange processing approximately $2.5 billion over a 24-hour period. Tokens traded at a premium, further spotlighting Upbit’s prominence in the cryptocurrency market, especially within South Korea.
The persistent hacking attempts underscore the security challenges faced by cryptocurrency exchanges globally amidst their rapid growth and the increasing adoption of digital assets. The situation calls for enhanced security protocols to safeguard users’ assets and maintain the integrity of the burgeoning digital economy.