Hackers Target Yet Another South Korean Crypto Exchange, Steal $32 Million

Korea's major crypto exchange Bithumb hacked; coins worth $32 million stolen

Korean crypto exchange Bithumb says it lost over $30M following a hack

Once the exchange noticed the hack, they immediately shut down all deposits/withdrawals, and started moving all their assets to offline cold wallets.

Due to the increasing safety issues, we are changing our wallet system. The cryptocurrency was worth $6622 at the time of publication. Bithumb notified investors of the theft and halted all trading.

Seoul police have since launched an investigation into the hack, collecting records and data from the company's computers.

Bithumb said on Wednesday that it reported the theft to the Korea Internet & Security Agency and that officials there are investigating.

According to the Bithumb spokesperson, 100 percent of the coins and tokens traded through the exchange have been moved to cold wallets.

In December previous year, Youbit, announced the shutdown of transactions, saying it would file for bankruptcy due to losses in coin withdrawal wallets following a series of hacking attacks.

In a notice posted on its website on Wednesday that it had stopped all trading and stored "all clients" assets in safe cold wallets' which are stored on platforms not directly connected to the internet. Ripple and other currencies were stolen, the exchange said, advising customers to stop depositing funds for the time being.

In its announcement, Bithumb didn't disclose the exact details of the coins that were affected in the hack and in what quantities.

Customers are fuming at the slow response. The South Korean exchange Bithumb confirmed on June 20 that 35 billion Korean won (approximately $31.5 million) in coins was stolen. IT experts blame the exchanges' lax security and say they place higher priority on speed of trading than on security.

This latest hack, though, further highlights the risks that cryptocurrency exchanges face from criminals. Trusting an exchange with funds is a bad idea due to the fact that it creates a "honey bag" effect to hackers who seek to break into the system for the sole objective of seizing the digital assets. Financial authorities recommend commercial banks retain security staff equivalent to five percent of total staff, while investing seven percent of their total budget in cyber security. Coinrail lost US$28 million (~RM112 million) in the attack.

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