Cryptocurrencies Fall as Korean Exchange Says $32 Million of Coins Stolen

Cryptocurrencies Fall as Korean Exchange Says $32 Million of Coins Stolen

Bithumb, one of the largest cryptocurrency exchanges in Korea, lost over $30 million worth of cryptocurrency to hackers on Wednesday in the second major cyberattack on a local cryptocurrency exchange in a matter of weeks. South Korea's Coinrail exchange was the target of the last attack, and shortly after the value of Bitcoin plummeted downward into the mid-$6,000 range. Deposits and withdrawal services will be halted until the system is fully secured, it said. Earlier this month, another platform headquartered in Asia, Coinrail, admitted to losing more than $40 million in various currencies in a hack.

On June 20, Bithumb had retracted its announcement that $30 million was hacked from its exchange, leading investors to panic.

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The post Breaking News: Bithumb Hacked For $30 Million In Cryptocurrencies, Market Drops appeared first on NewsBTC. In a tweet, the company urged its customers to hold off on making deposits into their Bithumb wallets. "However, this loss will be compensated by Bithumb's own reservoir, and all of our assets are securely saved in Bithumb's cold wallet".

Twitter user RedDragon_ posted an email screenshot which reads, "We noticed that between last night and today early morning, about 35,000,000,000 KRW worth cryptocurrencies have been stolen". The company has moved all their existing assets at a safe place to a cold wallet which will preserve cryptocurrencies in an offline environment which is inaccessible on the net.

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Because this was the second time Bithumb's security was breached, the request of the Ministry of Science and ICT promised to check if the cryptocurrency exchange has followed security recommendations which followed a three-month inspection this year. "But a portion of the cryptocurrency that was left in our hot wallet to ensure fast transactions had been stolen".

The decline was probably mitigated due to the prompt response of Bithumb and their confirmation that they would cover the losses from their funds. Demand for Bitcoin was so extreme at one point that it lifted prices in the country 50 percent higher than those in America.

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The exchange stated the amounts will be refunded, and it has removed all other assets to cold wallet storage.

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