Back in November last year, South Korea-based Upbit digital currency exchange platform was attacked, resulting in the loss of 342,000 ETH coins, worth $50 million from the platform’s hot wallet. Efforts have been made since then to reclaim the lost Ethereum, however, some still remain with the crypto hackers.
Back then, it was the biggest cryptocurrency hack in a while, making headlines on mainstream media outlets. According to reports from blockchain analysis firms, the crypto hackers are moving the stolen ETH between exchange platforms, in an attempt to get cash or any other digital currency.
Upbit crypto hackers attempting to cash in on stolen Ethereum
According to crypto transactions tracking tracking firm, Whale Alert, a substantial chunk of the Ethereum stolen from the Korean exchange has been deposited to a little known exchange called BYEX. The specific amount of ETH deposited on the exchange was not disclosed, however, the involved account has recorded a string of $25,000 transactions over the last few weeks.
Hackers transferring cryptocurrencies to exchange platforms means only one thing, they are trying to cash out their stolen crypto, or convert into other assets to cover their trail. Regardless of the case, it means that ETH will see some pressure to sell soon; due to the sale of the stolen ETH. This can cease from taking place, if the owners of the Upbit ETH are sent to intervene.
CZ vows to freeze any stolen crypto on Binance exchange
For example, Binance CEO Chanpeng “CZ” Zhao vowed to work closely with Upbit and other players in the industry to ensure stolen crypto that finds its way to Binance exchange platform is frozen instantly. If exchanges freeze the accounts of the crypto hackers, it prevents the stolen ETH from being sold; relieving some of the immediate selling pressure from the seller.
Currently, there seems to be sufficient demand for crypto, in the market; with the risk of stolen ETH finding its way to the market. In fact, Grayscale Investments has bought almost 756,540 ETH coins this year, which represents about 40 percent of all crypto mined in 2020 so far. On the other hand, long-term Ethereum positions have reached an all-time high, showing the optimism of investors in the altcoin.