Crypto exchange Bithumb will compensate customers following $30 million hack |

Crypto exchange Bithumb will compensate customers following $30 million hack

Peter Terlato 20 June 2018 NEWS

The exchange will reimburse customers who lost funds during the attack but the process must be regulated.

South Korean cryptocurrency exchange Bithumb reported that $31.5 million worth of digital assets were stolen by hackers. Additionally, deposit and withdrawal services have been suspended until trading can be restarted.

The exchange posted a notice on its website on Wednesday, informing clients that all trading had ceased after “cryptocurrencies worth about 35 billion won were seized between late yesterday and early morning today.”

In a since-deleted tweet, the company sought to alleviate consumer concerns that their funds might be compromised in the hack, promising to “cover” and compensate any affected users targeted in the attack.

Bithumb has notified the Korea Internet and Security Agency of the hack, according to BBC News.

One social commentator asked Bithumb why it had taken down the post assuring users of restitution. The exchange responded by saying, “We are providing compensation, it just has to be a more regulated process.”

In a post on social media late last week, the 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.

Although Bithumb has not disclosed any details of the coins that were stolen, CoinDesk Korea reports that XRP, Ripple’s native token and the world’s third-largest cryptocurrency, was a primary target in the attack.

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.

Just last week, a separate 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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