Bithumb is one of the thickest exchanges te South Korea and it wasgoed reported on June 19th that the exchange wasgoed hacked and the amount stolen is reported to be $30 million worth of digital currency.
Hack Happened During Wallet Switch
The affected exchange announced that they would be switching their wallet after suspending deposits. The hackers took advantage of this situation and they were successful te hacking into the system and stealing the cryptocurrencies. Switch of wallet system is considered spil security improvement, but this ended ter the hack. After the hack, Bithumb announced that they would be suspending all the deposits and withdrawal to secure their customers’ funds. Below is the note from Bithumb after the hacking incident.
Wij checked that some of cryptocurrencies valued about $30,000,000 wasgoed stolen. Those stolen cryptocurrencies will be covered from Bithumb and all of assets are being transferring to cold wallet.
Reasons for the Hack
The likely reason for the hack is said to be an punt with one of the fresh wallets. One of the fresh wallets might have contained malicious code, facilitating the hackers to steal $30 million worth of cryptocurrency. Which cryptocurrencies were stolen has not yet exposed by Bithumb, but it wasgoed speculated that it could be Ripple (XRP).
The exchange announced after the hack that all the deposits and withdrawals would be stopped until further notice to improve its security system and only when everything comes under its control.
Korean Authorities Embark their Investigation
Korean Ministry for Science and Technology has already embarked an investigation into this incident. Korean Internet and Security agency also is investigating this incident. They are fairly serious this time since this is the third time Bithumb is getting hacked. The exchange is working closely with thesis authorities to help them understand how the hack happened. Authorities send officers to Bithumb’s headquarters te Seoul for investigation.
Hacked for the Third Time
This is the not very very first time for the exchange. Previously an employee’s system wasgoed compromised and the hacker used the user’s detail from that system and let to leak of 30k user’s details. The gegevens wasgoed used by the hackers to make fake calls and messages and few of the customers fell prey to this and lost funds.
Bithumb Deleted its Initial Tweet
It wasgoed reported across social media channels that Bithumb deleted the initial tweet that promised compensation to the affected customers. So it is very unclear at this stage whether all the customers will be refunded by Bithumb. This has caused a stir on social media.
Wij strongly hope that Bithumb improves its security protocol and makes sure that the customers’ funds are safe hereafter. Also, Bithumb should compensate the affected customers by refunding all the amount lost.