Ubit Hacked; $50M Worth Crypto Stolen

Some are sure that this was an inside job because the attack was carried out at the moment when the exchange was moving funds
27 November 2019   195

The South Korean exchange UPbit has suspended the movement of funds through its wallets, after it was withdrawn from them about 60 billion won ($ 50 million) in cryptocurrency, writes the local publication Naver.

UPbit has confirmed that it limits the input / output of assets due to the need for a “server check”. The media report noted that the exchange did not notify users in advance of plans to transfer funds and carry out technical work.

In few hours, official confirmation of the hack came out.

My name is Lee Seok-Woo, CEO of Doo-Tum.

First of all, I apologize for any inconvenience this may cause to you.

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 wallet.
Unknown wallet address is 0xa09871AEadF4994Ca12f5c0b6056BBd1d343c029
 

Message at UpBit (translated via Google Translate)

This morning, the Whale Alert service registered a transfer of 342,000 ETH from UPbit to an unknown wallet. It was followed by several more translations of BTT and TRX. Thus, the total amount of assets transferred exceeded $ 70 million.

Whale Alert Twitter
Whale Alert Twitter

Some are sure that an insider worked among the exchange employees, since the attack was carried out at the moment when the exchange was moving funds.

The "hacker" timed when UPbit was making crypto transfers to its cold wallet (other alts like TRON, etc.) Hence, I think the probability of it being an inside job is higher than external breach.
 

Joseph Young @iamjosephyoung

"Analyst, focusing on finance, cryptocurrency, fintech"

According to Naver, the Korean Internet and Security Agency (KISA) is checking this.

Danish Tax Agency to Require BTC Traders to Report

In addition to info on profit and loss from 2016 to 2018, users must provide a lot of different date including info on created wallets
11 December 2019   109

The Danish Tax Administration has begun sending out letters to local traders asking them to provide comprehensive information about cryptocurrency transactions over the past few years. It is reported by Cointelegraph, citing its own sources.

In addition to information on profit and loss from 2016 to 2018, users must provide data on asset prices at the time of the transaction, the purpose of acquiring digital currency, as well as information about the created wallets.

In addition, users need to take a screenshot to confirm trading activity, on which should be the name of the trader and information about creating an account. The agency also intends to obtain bank statements from traders for the above period.

Many of our Danish users have received these letters, Skat is asking for a full breakdown of all their transactions and asking them to fix all past reports as well. Filing tax on cryptocurrency trades is a difficult task as crypto traders usually hold several exchange accounts & wallets and freely transfer crypto between them, so there’s no easy way to figure out what the capital gains are for any particular trade.
 

Robin Singh

Founder, cryptocurrency tax startup Koinly

The journalists was contacted by the founder of crypto tax startup with appropriate comment, which you can check above.