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South Korean Crypto Exchange Bithumb Hacked Again

The leading South Korean digital currency exchange Bithumb has been a victim of another hack, they suffered the loss of around $18 million of EOS virtual currency. The company was attacked on 29 March 2019. The monitoring system of the crypto company recorded some unusual withdrawal of the digital currency.

The firm wrote on its blog about the issue informing the users, “We deeply apologize to our members for delaying the cryptocurrency deposit and withdrawal service, we would like to inform you of the circumstances of the grounds and confirm that your assets are safe.”

This news was first reported by the Dovey Wan, a Primitive Ventures founding partner. She wrote in her tweet about the hack in Bithumb quoting, “Bithumb is being hacked, at its EOS cold storage level!!! Over 3 million EOS have been transferred out. Detail to be reported, confirmed by security firm who’s auditing for Bithumb.”

Another tweet was also posted by exchange, including a link of the article explaining the problem that actually what had happened. The article stated that the assets were robbed, and thanks to “internal embezzlement,” or claiming that it was done some insider in the exchange. Some reports also claimed that $20 million of Ripple XRP was also stolen in the hack attack.

This is the third time the Bithumb has been a victim of a hack. In 2017, around $1million was robbed from the Bithumb users in a hack attack explained at that time by hacking some employee’s personal system.  In 2018, it was reported that around $32 million of Ripple XRP was robbed from the hot wallet that comes under the Bithumb, which endangered the funds of at least 33,000 users.

After this incident of a hacking attack, the firm reported that it has been suffering from an “arrogant disregard of security,” further stating that “Bithumb’s most recent hacking is inexcusable.”

“Given the country’s record of security breaches and Korean authorities’ crackdown on the industry, one might expect Korean exchanges to have the most rigorous security protocols in the world,” the report stated. “Koreans once paid a kimchi premium of cryptocurrencies. It appears the premium price was for an inferior product.” This report pointed out some major question about the security of the major exchange firm. Now the question is that “Can users still trust that their funds are safe with the South Korean exchange firm?”

About Arushi Dubey

Arushi Dubey is a student of Bachelor in Arts( Psychology). She is pursuing Psychology in arts with English literature and French Language. She is well versed in the English language. She is good at expressing her thoughts into words. She is still getting more and more trained in gathering knowledge related to Crypto Currencies and expressing them.

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