Published: Fri, June 22, 2018
Money | By Bruce West

South Korea launches probe into Bithumb hack

South Korea launches probe into Bithumb hack

In a now-deleted tweet, Bithumb said today that 35 billion won of tokens - around $31 million - were snatched. Although Bithumb still hasn't revealed which cryptocurrencies were affected by this hack, they assured that all the losses from the theft will be reimbursed from the reserves of the exchange.

"Since coins in the cold wallets are not at all wired to the internet, it would have been impossible for hackers to steal those in cold wallets unless they physically broke in", said In, a blockchain expert at the research center.

That sent the price of cryptocurrencies, including bitcoin, tumbling more than 10% in the immediate aftermath. However, we will make every effort to reopen the service as soon as possible, with the ultimate goal of protecting your assets. The firm said the cyber heist occurred in the late Tuesday and was detected around 11 p.m., Bithumb halted all deposits two hours later and posted a notice on its website. At time of writing, cryptocurrency news service Coindesk recorded a almost 2 percent drop in Bitcoin value from Tuesday.

The recent hack is Bithumb's second attack this year and the third attack on a South Korean cryptocurrency exchange.

Despite Bithumb not officially confirming the actual cause of the hack, it's possible that an intruder gained access to an online wallet for some of the assets traded on the platform - judging from the relatively small amount stolen. They immediately started transferring all the digital assets held by them to their cold wallets as a prevention to further damages. It says that most of these exchanges have security vulnerabilities, including insufficient network isolation, an absence of monitoring systems for abnormal or suspicious activities, and inadequate cryptographic key and password security management.

Bitcoin fell by as much as $200 on Wednesday following news of a security breach of South Korea-based exchange Bithumb.

In order to explain the price recovery of Bitcoin, Magical Crypto Friends' Chikun has pointed to the good news coming from the Tether affair, whose audit appears to go well and without major incidents.

Bitcoin (virtual currency) coins placed on Dollar banknotes are seen in this illustration picture, November 6, 2017.

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