Published: Fri, June 22, 2018
Money | By Hannah Jacobs

Hackers steal $30m from crypto exchange Bithumb

Hackers steal $30m from crypto exchange Bithumb

As at the time of writing this article, the platform hasn't specified the coins taken from the platform. It went on to say that all stolen assets will be covered by the exchange, with remaining coins being transferred into cold storage.

The second post asks customers not to deposit into any Bithumb wallet addresses, and also redirect us to a page on their website where they explain the situation found in the first tweet of this news update in more detail. However, we will make every effort to reopen the service as soon as possible, with the ultimate goal of protecting your assets. The firm also added that all user assets are now being stored in "safe cold wallets" that are not directly connected to the internet. Whether this was somehow linked to the hack is unknown. This decision was due to some unusual activity regarding unauthorized access to its online wallets. However, the server check, which was to upgrade Bithumb's security protocols, exceeded the scheduled few hours. "But a portion of the cryptocurrency that was left in our hot wallet to ensure fast transactions had been stolen".

Bithumb have confirmed that all lost crypto will be compensated by its own reserve funds, however, the wallet system now in place will be revamped to offer greater security going forward.

South Korea was at the center of last year's global crypto-mania, playing host to some of the world's most active exchanges. Bithumb and other major cryptocurrency exchanges in Korea are required to implement authentication procedures for cyber security, but none of them have complied.

News of the breach sent Bitcoin's price down sharply, but the value later leveled off. Thus, some experts declared that the hack was responsible for the decline.

One of the world's biggest bitcoin exchanges on Wednesday said that more than $30 million worth of cryptocurrencies have been stolen from it.

Enthusiasm for virtual currencies has waned this year partly due to a string of heists, including the almost US$500 million theft from Japanese exchange Coincheck Inc in late January. A Bithumb staffer said, "We will compensate our customers once losses are confirmed".

At press time, Bitcoin is valued at $6,759, after gaiing 1.22 percent in the last 24 hours.

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