What just happened? For the second time this month, a South Korean cryptocurrency exchange has been hacked and suffered millions of dollars' worth of losses. Coinrail was only the 99th most popular exchange in terms of trade volume, but Bithumb has always been in the top 10 exchanges, and the most used exchange in South Korea.
Bitcoin plunged from W7.5 million to W7.08 million after news of the heist broke, and Bithumb's phone lines were inundated with calls from anxious investors inquiring about their deposits. Right now we have already saw a small dip as the price currently sits around $6,600 as the announcement about the Bithumb cryptocurrency hack was just made almost 30-40 minutes ago upon writing.
Major cryptocurrencies including Bitcoin, Ethereum, Ripple, and Bitcoin Cash on June 20 dropped by about 2 percent as the market went through a slight drop, which was also driven further by the increased decline trend of tokens and other smaller cryptocurrencies.
One of the most popular South Korean exchanges, Bithumb has been reportedly hacked a few hours ago as announced by the Bithumb official Twitter page.
The reason? Bithumb had discovered that cryptocurrencies valued at $30 million had been stolen.
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Bithumb was quick to reassure its customers that any who are affected by the theft will be paid back in full, but the exchange has ceased to operate for the moment. The exchange service also began to move all coins stored in online wallets to more secure offline wallets to prevent more theft.
"The loss will be compensated by Bithumb's own reservoir", Bithumb said. The company has temporarily frozen deposits and trading while it is in the process of "changing our wallet system" following the incident.
One cyber security worker said, "The victims of hacking attacks against exchanges are the customers, so we need to come up with tougher measures".
It is the latest series of cyberattacks on crypto exchanges that have raised security concerns for investors.
What do you think about Bithumb's handling of its hack? The incident was blamed for the fall experienced by Bitcoin, but experts argued that this isn't the case at all.