Upbit exchange will delay the withdrawal of crypto assets to fight fraudsters

Upbit exchange will delay the withdrawal of crypto assets to fight fraudsters

South Korean exchange Upbit will change the rules for the withdrawal of crypto assets from November 28 to protect user accounts from malicious attacks.

The new change, which will take effect on November 28, will allow customers to withdraw digital assets whose value is equivalent to the amount in Korean won deposited 24 hours after the withdrawal request.

Deferred withdrawal applies only to cash deposits that are exchanged for cryptocurrency. There is no time limit for the withdrawal of Korean won corresponding to deposits in fiat currency. Similarly, users can deposit digital assets and withdraw Korean won or crypto assets within 24 hours.

“If a user with a balance of 0 won in an Upbit account deposits 1 million won and requests the withdrawal of digital assets worth 1 million won in less than 24 hours, the withdrawal will not be possible. However, 24 hours after making a deposit, you can withdraw digital assets worth 1 million won without such restrictions, ” says Upbit.

The new rule should help the exchange prevent financial fraud. Upbit mentions “voice phishing” – a form of fraud where attackers try to trick the victim into passing on confidential financial information over the phone. Presumably, the delay in the withdrawal of money gives users the opportunity to stop fraudsters after receiving a notification of an incomplete withdrawal of assets.

“We plan to create a robust environment for investing in digital assets by carefully studying changes in the types of financial fraud and constantly strengthening preventive measures,” he said.
a spokesperson for Upbit.

Recall that exactly a year ago, the South Korean cryptocurrency exchange Upbit announced
the theft of 342,000 ETH (about $49 million at that time) as a result of a fraudulent transaction from the platform’s wallet.