South Korea's Bithumb loses $32 million in digital money heist, bitcoin falls

Muriel Colon
June 23, 2018

South Korea-based cryptocurrency exchange Bithumb has confirmed that virtual currency worth about $31.5 million has been stolen by hackers.

Bithumb is one of the most important cryptocurrency exchange platforms in South Korea, with the second largest volume in the market.

The hack is the second time Bithumb has been hacked in the space of a year, and the second Korean exchange to be hacked in just over a week.

Earlier this year, South Korea imposed a ban on anonymous bank account used for trading digital currency in a bid to prevent the use of cryptocurrency for money laundering and other crimes. We will keep notice you of the restart of the service.

Meanwhile, the company said remaining assets had been moved to a cold wallet to be stored in a more secure environment that is not accessible via the internet. The existence of enough United States dollars to back the crypto reserves of the cryptocurrency pegged to the fiat currency 1:1 on an even scale is great enough to counter yet another possible price correction, and more good news will definitely bring the prices up once again.

Bithumb is, however, the bigger of the two operations, and represents the world's sixth busiest crypto-cash trading platform, according to the news site Coindesk.

South Korean policymakers are debating comprehensive regulations covering cryptocurrencies, with proposals ranging from shutting down local exchanges to allowing them to operate under increased supervision.

At this point in time, Bithumb is rank ed 6 and is one of the largest exchanges in the world. Bithumb said its cryptocurrency holdings were shifted to an offline "cold wallet", and any losses for traders would be covered.

The recent Bithumb hacking attack has demonstrated the importance of utilizing major cryptocurrency exchanges because the company has officially stated that it will fully compensate the losses of its investors with company funds. Bithumb apologized for the incident, asking its customers "not to deposit any funds into Bithumb wallet addresses". Coinrail lost US$28 million (~RM112 million) in the attack. Bithumb rival Coinrail was targeted by hackers earlier this month in a raid which cost it $37m, around 30% of its total token/coin reserves.

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