Upbit Moves 99% of User Funds to Cold Wallets
Upbit boosts user asset security by shifting 99% of funds to cold wallets after a major hack.
- Upbit boosts cold wallet storage to 99% after hack.
- Hot wallet proportion drops to 0% to enhance security.
- Action surpasses South Korea’s 80% cold storage rule.
South Korea’s top cryptocurrency exchange, Upbit, has responded swiftly to a recent cyberattack by moving 99% of user funds to cold wallets. This bold move comes after hackers stole 44.5 billion KRW (around $33 million) from one of Upbit’s hot wallets.
Hot wallets, which are connected to the internet, are typically used for daily transactions but are more vulnerable to attacks. Cold wallets, in contrast, are offline and provide a much higher level of security for user assets.
Exceeding Regulatory Standards
South Korea already requires crypto exchanges to store at least 80% of user funds in cold wallets. Upbit’s recent update far exceeds this requirement, reducing the hot wallet proportion to 0%. The exchange confirmed that the wallet system upgrade has already been completed, minimizing future risks of similar breaches.
This shift is part of a growing trend among exchanges worldwide to prioritize asset security, especially in light of increasing cyber threats. Upbit’s decision is expected to restore user trust and set a new standard for crypto asset protection in the region.
A Cautious Step Toward User Safety
Upbit’s security upgrade sends a clear message to both users and regulators: protecting digital assets is a top priority. By taking preemptive action, the exchange is aiming to rebuild confidence after the breach and demonstrate a strong commitment to user safety.
Investors and users can now feel more secure knowing their crypto holdings are kept mostly offline, away from the reach of hackers.
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