An official post from Upbit exchange revealed that 342,000 ETH (approximately $50 million) were drained from its hot wallet.
A rogue transaction occurred on one of Upbit’s deposit addresses at 11 P.M. Eastern time. All the funds were sent to an Ethereum address that is unknown to the exchange.
The Upbit team responded by abruptly suspending cryptocurrency deposits and withdrawals. All the funds from other hot wallets were moved to cold storage to prevent further losses.
Upbit pledged to cover all the lost users’ funds with its own assets, a process that the exchange is “working on,” though it warned that it would take “at least two weeks.”