South Korean Cryptocurrency Exchange Bithumb Hacked for 411 Million ZAR


One of the most important virtual currency exchanges in the world, Bithumb, has been hacked for 411 million ZAR on June the 19th. Bithumb is just another exchange hacked during this year after BitGrail, Coincheck, and ConRail.

 

Bithumb Hacked

 

Bithumb informed on June the 19th that its exchange has been hacked losing an important amount of cryptocurrencies. The exchange suspended deposit and withdrawals to make sure that all the funds are secure.

 

On Twitter, Bithumb Official wrote:

“All deposits and withdrawal service will be stopped to make sure the security. We will keep notice you of the restart of the service. We apologize for your inconvenience and thanks for your understanding.”

Bitcoin Exchange CEX.IO

 

At the same time, all the funds have been moved to a cold wallet, and the amount of money lost will be compensated by the exchange. The truth is that some of the latest hacks that took place in the market did not end well for users, that lost most of their assets. According to a Korean company known as Sentinel Protocol, which specializes in scam, hack and fraud detection was able to detect that some of the coins stolen were related to Ripple (XRP).

 

At the moment of writing, Bithumb is the 6th most important cryptocurrency exchange by trading volume with 5.6 billion ZAR traded in the last 24 hours. The exchange offers an important amount of trading pairs against the Korean Won and the most traded virtual currencies are EOS, TRON, and Bitcoin.

 

Some important figures in the industry commented on the situation. For example, Charlie Lee, Litecoin’s creator said:

“Another day, another hack. Hopefully BitThumb is able to cover this amount, though $30MM is not a small amount. As I’ve said many times, be smart and only keen on exchange coins that you are actively trading. It’s best to withdraw after trading. Twitter.com/BIthumbOfficia…

 

Other Exchanges Hacked

 

In January, the cryptocurrency exchange Coincheck got hacked for 6.8 billion ZAR, which at that time were 523 million NEM coins. The company said that they were storing the funds on a simple hot wallet, which are much more insecure than multisig ones. Moreover, they did not have the funds in a cold storage wallet. After the hack, several exchanges in the country decided to create a self-regulatory body to avoid future attacks and have more clear regulations for investors and companies.

 

BitGrail, an Italian exchange that focused on Nano coins, experienced an important hack in February, days after Coincheck. This time, 2.6 billion ZAR were stolen in XRB (which later changed its name to Nano). The situation with BitGrail is more complicated than with other exchanges. The truth is that the owners of the exchange complained to Nano about the hack, but Nano developers give the responsibility to BitGrail.

 

The reality is that the funds couldn’t be recovered, there is no information about where they could be, and a court in Italy decided to close the exchange and its operations when it tried to start activities again.

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Carlos Terenzi

I have a Bachelor’s Degree in International Relations and I write about Cryptocurrencies and European Politics. I live between Buenos Aires and Wroclaw.