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Bithumb, One of the Largest Cryptocurrency Exchanges in South Korea Was Attacked by Hackers

Bithumb, one of the most important cryptocurrency exchanges on the market, suffered a hacker attack on June 19th this year. During the attack, around 30 million US dollars in cryptocurrencies were robbed from the accounts.

The information about the attack was published by the company on its official Twitter account. Bithumb informed the public about the hacker attacked and announced the suspension of all the deposit and withdrawal services in order to guarantee the security of the platform. The cryptocurrency exchange added that the stolen cryptocurrencies would be covered by the company and all the funds would be transferred to a cold wallet outside the internet. This is the official announcement: “[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 transferred to cold wallet.”

Bithumb also alerted the users through its official website regarding the change of all the passwords. The company expects to begin functioning again in the near future.

It is worth mentioning that immediately after the hacker attack was announced by the South Korean cryptocurrency exchange, the cryptocurrency market followed and the price of Bitcoin dropped by 200 US dollars per coin in just a few minutes after the information about the attack was published. The current price of Bitcoin is 6,658 dollars per coin, according to CoinMarketCap.

Bithumb is one of the most important cryptocurrency exchange platforms in South Korea, the country with the second highest market volume. Among the bitcoin exchange operators in the world, Bithumb occupies the position number 21 with a daily volume equivalent to around 40.5 million dollars in exchanges BTC/KRW, with a total trading volume in different cryptocurrencies of around 380.7 million dollars, according to CoinMarketCap.

The cryptocurrency exchange was founded back in 2013 and some media reports from South korean estimate that Bithumb has around 6.3 billion Korean wons of cryptocurrency reserves at the end of last year or almost six billion US dollar. The South Korean cryptocurrency exchange manages more than 75% of the Bitcoin trading volume in the country and around 10% of the entire cryptocurrency trading in the world.

Besides Bitcoin, Bithumb offers other popular cryptocurrencies such as ether, ether classic, dash, litecoin, ripple, bitcoin cash, monero, zcash and others.

After the aforementioned hacker attack, Bithumb became the second cryptocurrency exchange from South Korea to become victim of a cyberattack in less than two weeks. On June 10th this year, Coinrail, another cryptocurrency exchange from the same country was attacked by hacker in which it lost 30% of its funds. This attacks is currently under investigation by the Korea Internet & Security Agency (KISA).

The hacker attacks are one of the problems that most affect the cryptocurrency exchanges around the world, both centralized, as well as decentralized ones. These problems are constantly pushing these platforms to make updates of their system in order to improve their security levels.

At the beginning of this year, Coincheck, a cryptocurrency exchange from Japan was also a victim of a hacker attack during which the hackers managed to steal 530 million dollars worth of cryptocurrencies.

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