Leading South Korean Crypto Exchange Bithumb Hacked; $31.5M Stolen

Leading South Korean Crypto Exchange Bithumb Hacked; $31.5M Stolen

Leading South Korean Crypto Exchange Bithumb Hacked; $31.5M Stolen

At press time, Bithumb is now trading over $364 million in 24-hour trading volume, according to data from Coinmarketcap. The trading volume of Bithumb is roughly $398 million, according to an index by CoinMarketCap. That sent the price of cryptocurrencies, including bitcoin, tumbling more than 10% in the immediate aftermath.

"The loss will be compensated by Bithumb's own reservoir", the exchange told Yonhap News and also stated that "all of clients assets in safe cold wallet", which operates on platforms not directly connected to the internet.

However today, the cryptocurrency market added $8 billion to its valuation after the slight recovery made by Bitcoin, shortly after Bithumb, South Korea's largest cryptocurrency exchange was hacked.

Days prior to the hack, Bithumb said on Twitter that it was "transferring all of asset to the cold wallet to build up the security system and upgrade" its database.

Second Largest Korean exchange, Bithumb, got hacked and lost a modest amount of $31 million.

Bitcoin was trading at $6,780.7 by 12:05AM ET (04:05 GMT) on the Bitfinex exchange, up 2.4% over the previous 24 hours. The exchange trades in all the big cryptocurrencies including Bitcoin, Ethereum, Ripple, Tron, and Bitcoin Cash.

Bithumb, an exchange based in South Korea, said in a notice on its website that all customer deposits and withdrawals have been suspended while it reviews the situation.

This latest hack, though, further highlights the risks that cryptocurrency exchanges face from criminals. The exchange service also began to move all coins stored in online wallets to more secure offline wallets to prevent more theft.

One cyber security worker said, "The victims of hacking attacks against exchanges are the customers, so we need to come up with tougher measures".

To several users, a Bithumb spokesperson said that the company retracted the statement because it was advised by regulators to conduct a comprehensive investigation into the security breach first before releasing an official statement. 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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