Bithumb recovers $14 million after hack |

Bithumb recovers $14 million after hack

Peter Terlato 28 June 2018 NEWS

The digital currency exchange collaborated with other exchanges to quickly retrieve some of the stolen funds.

South Korean cryptocurrency exchange Bithumb has recovered around $14.25 million in stolen funds, a little over one week after hackers made away with $31 million in various digital currencies.

Last week Bithumb was forced to suspend deposit and withdrawal services following the hacking incident.

In a post on its website, the exchange revealed that it had recovered nearly half of the missing funds, reducing outstanding damages to around $17 million.

“The reason for the decline was because we were able to quickly take custody of the cryptographic wallets of all cryptographic currencies, collaborating with the Cryptographic Fund and the Worldwide Cryptographic Exchange to preserve some of the money we expected to be seized,” Bithumb said. “We will continue to work to prevent further damage and recover the damage until the incident is over.”

Bithumb reported the theft to the Korea Internet and Security Agency. Deposits and withdrawals remain suspended as a security measure. In a since-deleted tweet, Bithumb sought to alleviate concerns, promising to “cover” and compensate any affected users targeted in the attack. These details remain ambiguous.

In a post on social media the week prior, the exchange platform revealed that it was in the process of transferring all digital currencies to a cold wallet to enhance security and database encryption.

It is likely that the coins stolen during the hack were removed from hot wallets, connected to the internet.

11 different digital currencies were compromised in the hack. Hackers stole 2,016 bitcoin ($12 million), 5.2 million XRP ($2.4 million), 2,219 ether ($950,000) and 692 Bitcoin Cash ($487,000). Other, soft-pedaled coins were also thieved, including aelf, golem and kyber network tokens.

Bithumb is the sixth most busiest cryptocurrency exchange in the world, according to CoinMarketCap. The crypto-tracking website also revealed that Bithumb accounted for 7.55% of global XRP trading volume over the last 24 hours. $27.58 million worth of the digital currency changed hands on Bithumb during that timeframe.

Earlier this month, another South Korean exchange, Coinrail, lost $36 million worth of assets in a crypto hack.

You can learn all about different exchanges, understand exactly how to buy and sell cryptocurrencies, calculate your taxes, discover digital wallets to hold assets and explore a list of all the alternative coins on the market.

Disclaimer: This information should not be interpreted as an endorsement of cryptocurrency or any specific provider, service or offering. It is not a recommendation to trade. Cryptocurrencies are speculative, complex and involve significant risks – they are highly volatile and sensitive to secondary activity. Performance is unpredictable and past performance is no guarantee of future performance. Consider your own circumstances, and obtain your own advice, before relying on this information. You should also verify the nature of any product or service (including its legal status and relevant regulatory requirements) and consult the relevant Regulators' websites before making any decision. Finder, or the author, may have holdings in the cryptocurrencies discussed.

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