Upbit pays users for reports of illegal crypto activities

South Korean exchange Upbit started a bounty program for the users to report fraudulent ICOs and crypto scams
28 March 2018   826

With the cryptocurrencies gaining popularity various fraudulent schemes has been in upswing too. And now the largest South Korean exchange Upbit launched a reward system for users who report such schemes.

Upbit has created the reward system for the platform users to report fraudulent ICOs and illegal scams posing as cryptocurrencies. The aim of such a campaign is to “prevent damage due to illegal fraud and to create a sound cryptocurrency ecosystem”. The exchange asks all of its users to participate in the program in order to fish out the scammers and clean up the stage for the real ICOs to shine.

The reward program has been launched just recently and is already providing the results, confirming that it indeed works. At this time, more than 20 cases of fraud were reported to the police.

If several witnesses or victims report the same ICO or currency offering, then the cash award will go to the first reporter of the illegal case. The reward Upbit pays for the original compliant is 1 million won, which is approximately $930. A good incentive for a good cause, you may say. The campaign on Upbit will be held for a year, ending in March 2019.

And yesterday, Upbit's rival exchange Bithumb has started to distribute brochures with the information about common scam schemes and how to prevent the damage from them in easy to understand format, aimed at common user base.

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   312

The South Korean exchange UPbit has suspended the movement of funds through its wallets, after it was withdrawn from them about 60 billion won ($ 50 million) in cryptocurrency, writes the local publication Naver.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