Upbit Freezes 2.6B Won: Launches 10% Recovery Bounty

• Upbit 2.6 Billion Won Asset Freeze follows a $38.5 million Solana withdrawal.
• OTS tracking and global exchange coordination secure hacked funds and blacklist wallets.
• A 10%bounty and full user reimbursement turn this into a recovery campaign.

Upbit cryptocurrency exchange has frozen 2.6 billion won worth of assets that were victimized, according to reports.

Related: Upbit Confirms $37M Hack: Exchange Says It Will Cover Every Lost Dollar

How Upbit Responded To The Abnormal Solana Withdrawal

Following the detection of abnormal withdrawal activity from a wallet affiliated with the Solana network, Upbit blocked deposits and withdrawals and upgraded its wallet system as a security measure. 

In the meantime, the cryptocurrency exchange said that the 38.6 billion won in customer assets tied to the abnormal withdrawal has already been fully covered with the company’s own funds, while assuring users that it remains in control of the ongoing investigation and overall platform security.

Upbit Deploys Proprietary OTS

According to reports, Upbit has deployed its proprietary On-Chain Automatic Tracking Service (OTS) to trace the digital assets transferred out of its network. It is also collaborating with other virtual exchanges worldwide to block additional asset transfers.

In the meantime, some of the steps taken by the crypto exchange so far include an initial 24-hour OTS-based precise monitoring conducted by the Upbit Asset Tracking Team. The team’s initial target is to secure the on-chain movement path and associated addresses of the withdrawn virtual assets.

Upbit Offers 10% Recovery Bounty

It is worth noting that Upbit has blacklisted the identified addresses and requested that virtual asset exchanges worldwide block transactions originating from these addresses. Subsequently, the move by Upbit resulted in the freezing of 2.3 billion won worth of victimized assets within five hours of the infamous withdrawal. Subsequent actions have led to a total of 2.6 billion won being frozen, with Upbit undertaking follow-up procedures to facilitate the recovery of the stolen funds.

In the meantime, the crypto exchange has launched a reward program to speed up the funds recovery process. According to reports, the exchange is offering a 10% compensation for individuals and organizations who contribute to the tracking and freezing of the victimized assets. 

Meanwhile, a representative of the exchange assured users that Upbit’s assets fully cover the affected funds. However, the crypto exchange is committed to preventing the affected funds from falling into the hands of attackers.

Related: Naver to Acquire Upbit Operator Dunamu in $10.3 Billion Stock Swap