Upbit Theft May Have Affected Other Altcoins

Beyond the high-stakes heist of 342,000 ETH, Upbit may have lost some amounts of TRX, XLM, and BTT.

The Upbit exchange may have suffered additional losses from smaller altcoins, show the estimations of TopTechBuzz.

Based on Korean media reports, there are suspicions of Stellar (XLM), BitTorrent Token (BTT) and TRON (TRX) being diverted. Upbit has admitted only to the Ethereum (ETH) theft, though reports expect the hack to reach a value of $79 million after including the altcoins.

Upbit explained some of the coin transfers as switching to new, safe cold wallets. So far, there are no confirmations on whether the three assets were diverted. At the same time, the ETH hacker has started moving the coins to other wallets, and even to exchanges. The hacker now has a new and updated list of addresses:

https://twitter.com/KryptoGoblin/status/1200025728080908295

The immediate removal of funds to multiple addresses resembles the mode of one of the hacker groups, which prefer to move the funds immediately. Other hackers leave the haul for years in the same address before moving the coins.

In the past day, tracking transaction showed the hacked split the funds into tranches of around 50,000 ETH, and sent them to a series of new wallets.

https://twitter.com/whale_alert/status/1200060453021536256

The Upbit hack also created speculations that the exchange attempted to hide some of its earnings and avoid taxation.

https://twitter.com/koreacryptonews/status/1199818079665917952

One way to hide the funds without tracking is to pay them to a known miner, in the form of fees. The coins then get listed as originating from miner fees. However, so far only a few hundred ETH has been moved this way, and the significant Upbit haul may be harder to hide.

The hack raised once again the questions of rolling back the Ethereum network. In theory, the stolen ETH could also enter DeFi schemes and be used as collateral. So far, major exchanges have pledged to track the wallets and attempt to freeze any coins related to the hack.

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