Bithumb Loses $32M in Bitcoin Heist

Korean crypto exchange Bithumb says it lost over $30M following a hack		
		
	Jon Russell

       @	   
   	11 hours

Korean crypto exchange Bithumb says it lost over $30M following a hack Jon Russell @ 11 hours

Hackers stole more than $30 million worth of cryptocurrencies from South Korea's top bitcoin exchange, sending the unit's price falling around the world on Wednesday.

South Korea's second largest crypto-currency exchange by trade volume, Bithumb, today posted a message on its Twitter feed - early morning in Asia - notifying customers that it had been the victim of crypto-currency theft.

As of 10:20 a.m. Wednesday, the price for Bitcoin dropped by 5.9 percent; Ethereum by 9.8 percent and Ripple by 9.7 percent compared to 24 hours before the hacking attack, Yonhap said. Following the incident, the exchange has since moved swiftly to suspend all withdrawals and deposits on its platform, with all usual services expected to resume after the matter is solved.

Some pundits blamed the Coinrail hack on the 11% "bloody Sunday" decline where hackers made off with around $40 million. However, we will make every effort to reopen the service as soon as possible, with the ultimate goal of protecting your assets.

Although Bithumb might not be keen to advertise the loss, deleting its initial tweet announcing the hack and promise of compensation.

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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. The company said it would compensate customers for all lost assets. "$30 million can be easily covered with the company's funds", tweeted analyst Joseph Young on Tuesday.

Suspected cybercriminals have hacked Bithumb, the South Korea-based exchange platform.

Bithumb had managed to preempt what it interpreted as an imminent attack on its server by moving a large number of cryptocurrencies to its cold wallet after noticing the "number of unusual access attempts" had increased, which led it to "strengthening security".

In each of these hacks, the security shortcomings involve the exchanges' "hot wallets", or wallets that are stored and accessible online.

Crypto-exchanges are used to trade in cryptocurrencies, but many have suffered major hacks and cyberattacks over the years. A single Bitcoin is now valued at roughly $6,700, having rebounded slightly since the Coinrail Bitcoin heist lows.

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