Binance Freezes Funds from 2019 Upbit Exchange Hack
Summary
- Hackers stole over 342,000 ETH from the South Korean crypto exchange Upbit.
- Hackers have begun moving funds to cryptocurrency exchange Binance
On Wednesday morning, hackers continued to transfer more Ethereum to Binance. According to Whale Alert, the most recent transfer was worth over $27,000.
However, this is not the first time the hackers have moved funds to Binance. Reported earlier by The Crypto Associate, the hackers have been moving a large amount of Ethereum in recent months, some of which is going to Binance.
Binance’s Response
Following the transfer to Binance, CEO Changpeng Zhao (CZ) replied stating that Binance has frozen the illicit funds.
CZ isn’t blind to the inevitable backlash Binance may receive after freezing funds. Adversaries may claim that Binance’s actions are centralized, which are against the core principles of crypto.
However, Binance’s CZ takes a stand against crypto crime and bad actors by stating it is necessary to fight bad actors in crypto and as a result, stands behind Binance’s decision to freeze the funds.
Upbit Hack
On November 29th, 2019, hackers made away with 342,000 ETH (currently worth $67 million) from the popular cryptocurrency exchange’s Ethereum hot wallet.
Following a temporary pause on deposits and withdrawals, the major cryptocurrency exchange is back on its feet, with over $115 million in 24-hour trading volume according to CoinMarketCap.
As Binance freezes funds from the Upbit hack, it still remains unclear whether other exchanges will follow.
According to Whale Alert, many of the funds are being sent to an exchange called, “BYEX.” With only a portion of the funds sent to Binance, it will be up to BYEX to stop the majority of the illicit funds. With crypto adoption increasing, minimizing the effects of crypto crime are essential as crypto is already shrouded in negative sentiment.
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