Published: Fri, June 22, 2018
Business | By Pearl Harrison

Bithumb becomes the second victim to crypto theft in Korea this month

Bithumb becomes the second victim to crypto theft in Korea this month

Bithumb, one of the largest cryptocurrency exchanges in Korea, lost over $30 million worth of cryptocurrency to hackers on Wednesday in the second major cyberattack on a local cryptocurrency exchange in a matter of weeks.

Second Largest Korean exchange, Bithumb, got hacked and lost a modest amount of $31 million. "However, this loss will be compensated by Bithumb's own reservoir, and all assets of our customers are securely saved in Bithumb's cold wallet, hence all asset is completely safe and secured". The exchange service also began to move all coins stored in online wallets to more secure offline wallets to prevent more theft.

One of the world's biggest bitcoin exchanges on Wednesday said that more than $30 million worth of cryptocurrencies have been stolen from it. "It is not that we cannot see which "wallet" these "coins" have been transferred into but rather that the stolen tokens can be transformed into "fresh" tokens by using "mixing services", which create new untraceable tokens", he explained.

Although Bithumb might not be keen to advertise the loss, deleting its initial tweet announcing the hack and promise of compensation.

Coinrail is a relatively smaller crypto exchange platform with approximate $2.5 million trading volume, according to Nasdaq. For safety reasons, cryptocurrency exchanges store between 70 to 80 percent of their cyber cash holdings in "cold wallets" that are not connected to the Internet, but they require more time to make transactions.

It's the latest in a series of thefts reported by cryptocurrency exchanges in recent months.

As was the case with Coinrail attack, the price of Bitcoin, Ethereum, and Ripple all fell on the back of the news but have since recovered.

Suspected cybercriminals have hacked Bithumb, the South Korea-based exchange platform.

For now, Bithumb is moving the remainder of its funds into a cold wallet to avoid further risk. IT experts blame the exchanges' lax security and say they place higher priority on speed of trading than on security. However, the effect of the Bithumb hack has seemingly sent Bitcoin's value into a downward slide to just $6,562 in the last 24 hours.

Bitcoin was 1.9 percent lower at $6,607.00.

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