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Bithumb Hacked for $31.5 Million, Withdrawals and Deposits Frozen

South Korean Exchange Bithumb confirmed that it temporarily stopped all deposit and withdrawal services subsequent to a large-scale hack.

Bithumb Hacked for $31.5 Million, Withdrawals and Deposits Frozen

Photo by Markus Spiske on Unsplash

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South Korean Exchange Bithumb confirmed that it temporarily stopped all deposit and withdrawal services subsequent to a large-scale hack. Tweets posted and deleted by the official Bithumb Twitter account imply that over $30 million USD was lost during the hack.

Bithumb, currently the sixth largest exchange in the world by 24-hour volume, posted a tweet announcing the hack on June 20, 2018, which has since been deleted:

โ€œ[Notice for the suspension of all deposit and withdrawal service] We checked that some of cryptocurrencies valued about $30,000,000 was stolen. Those stolen cryptocurrencies will be covered from Bithumb and all of assets are being transferring to cold wallet.โ€

Bithumb Will Compensate All Losses

Bithumb has not yet revealed any information regarding the hack, but has taken to Twitter to advise exchange users of the transfer of all assets to cold wallets in order to โ€œbuild up the security system and upgrade DB,โ€ making no reference to the aforementioned hack, labeling the event as a โ€œrestart of serviceโ€.

Aย post published on the Bithumb announcement blog provides clarity on the situation:

โ€œWe noticed that between last night and today early morning, about 350,000,000,000 KRW worth of cryptocurrencies have been stolen. However, this loss will be compensated by Bithumbโ€™s own reservoir, and all assets of our customers are securely saved in Bithumbโ€™s cold wallets, hence all asset is completely safe and secured.โ€

Bithumb deposits and withdrawals are still offline as of the time of this report, with the Bithumb Twitter advising customers not deposit funds until services are restarted:

Korean Exchange Hacks Continue

Bitcoin Dives Below $7,000 Support Level Following Korean Exchange Hack
Related:ย Bitcoin Dives Below $7,000 Support Level Following Korean Exchange Hack

The Bithumb hack marks the second South Korean exchange hack this month โ€” Coinrail, another highly popular Korean cryptocurrency exchange, was hacked in the first half of June. The hack, which resulted in the loss of over $40 million, captured significant attention within the cryptocurrency community and catalyzed a Bitcoin price drop of over 12%.

Litecoin founder Charlie Lee commented on the Bithumb hack, repeating the advice that itโ€™s best to only leave tokens on exchanges when actively trading:

Market Experiences Minor Dip

The crypto market underwent a minor dip after the hack, with Bitcoin losing $150 in less than one hour. Markets appear to be stabilizing, however, with market participants likely becoming inured to frequent South Korean exchange hacks.

Bithumbsโ€™ announcement that all customers will be reimbursed is likely to mitigate some of the stress placed on the currently fragile cryptocurrency market as a result of the hack.

Quadency

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