(Nov 17): Upbit has suspended deposits and withdrawals after it discovered an unauthorised transfer of about US$37 million ($48 million) of digital assets, a black eye for South Korea’s leading crypto exchange just a day after unveiling a historic takeover by Naver Corp.
The crypto exchange said in a statement that a portion of Solana network-based assets worth approximately 54 billion won were transferred to an unauthorised external wallet address on Nov 27. It added that it will fully compensate users for any losses, without revealing further details of the exploit.
The incident occurred the day after South Korean technology giant Naver announced plans to acquire Dunamu Inc, Upbit’s parent, via a US$10.3 billion all-stock deal. On Thursday, executives touted the transformative nature of the transaction in the morning even as unknown parties infiltrated Upbit’s system. Dunamu representatives didn’t immediately respond to a request for comment.
That press event took place hours before Upbit disclosed the exploit. Naver executives outlined plans to spend 10 trillion won on AI and blockchain technology over the next five years, angling to become a global player in two key arenas.
Naver intends to integrate its financial and AI infrastructure with consumer services, chief executive officer Choi Soo-yeon told reporters. The company has previously talked about plans to buy tens of thousands of Nvidia Corp chips to build and develop AI.
By acquiring Dunamu, Naver is placing an unusually big bet on the crypto and fintech industry — especially for a company better known for online shopping, anime and its dominant search app. A representative for Naver declined to comment on the Upbit infiltration.
See also: Terraform Labs co-founder says five years in prison enough for crypto fraud
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