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South Korean Crypto Exchange Bithumb Hacked; $30 Mln Coins Stolen

bithumb june20 lt

South Korean cryptocurrency exchange Bithumb lost coins worth around $30 million in hacking, following which it stopped all trading temporarily.

While announcing the incident in Twitter posts, the world's sixth largest exchange by volume, urged customers not to make any deposits until further notification as it is changing wallet system.

The Seoul-based company said it has moved all users' assets into safe cold wallets, which are not directly connected to the internet, making it less vulnerable to theft. The company intends to fully compensate customers from its own reserves.

"All deposit and withdrawal service will be stopped to make sure the security. We will keep notice you of the restart of the service," the company said in its Twitter post.

Following the tweets from Bithumb, Bitcoin fell to as low as $6,561.79 from about $6,718.35, according to CoinDesk's bitcoin price index. Ethereum, the second largest cryptocurrency, also lost its value.

Earlier in June, Coinrail, a relatively small South Korean exchange, had said some of its digital currencies appeared to have been stolen by hackers, following which cryptocurrencies were down. The exchange, which trades more than 50 different cryptocurrencies, then said it had transferred other coins to a cold wallet.

In late January, nearly $500 million worth digital coins were stolen from Japanese exchange Coincheck Inc., following which regulators around the world started taking strict actions against crypto exchanges.

According to coinmarketcap, bitcoin was at $6,660.70 on Wednesday morning, down 1.04 percent over 24 hours, with a market cap of $113.93 billion. Ethereum, however, was up 1.02 percent over 24 hours to $525.64 a coin, while Ripple was down 1.3 percent.

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