Bithumb Hacked Again, Around $19 Million Stolen

by Senad Karaahmetovic
Bithumb Hacked Again, Around $19 Million Stolen

Bithumb, a South Korean cryptocurrency exchange, has suffered another hack two days ago, the company announced.

The exchange tweeted on Friday, March 29, that there is a delay in providing deposit and withdraw services after the company detected “abnormal withdrawal” of digital assets owned by the company.

“All the spilled cryptocurrency is owned by company, and all the member’s asset is under the protection of cold wallet,” the statement noted.

Yesterday, the Block announced that more than 3 million EOS and 20 million XRP have been stolen from Bithumb, which is worth around $19 million in the current market.

This incident has raised more concerns about Bithumb’s security as this is the second major hacking incident the South Korean exchanged has suffered in less than a year. Last June, hackers stolen $31 million from the exchange’s hot wallets. Although the company managed to recover almost half of the stolen funds, hackers managed to get away with $17 million in the end.

Read more: Forbes: Bithumb Faking up to 94% of Trading Volume

In the latest incident, the company said it immediately secured all funds as soon as the abnormal activity was detected by its abnormal trading monitoring system. The incident was analyzed and exchange concluded that it is an “accident involving insiders”.

Furthermore, Bithumb says the incident happened due to company’s policy to focus on
“defense of outside attack and lack of verification of internal staff”.

Changenow, one of the exchanges to which the forth biggest amount of EOS stolen funds were sent, issued a statement to note it has temporarily disabled EOS payments while it remains “in close cooperation with Bithumb and all participants of the investigation”. EXMO, a UK-based cryptocurrency exchanged, has received by far the largest amount of hacked funds.

Bithumb announced plans to cut up to more than 50 percent of its workforce just last week, which would mean going from 310 to around 150. Unconfirmed reports on social media have connected the latest hacking incident with exchange’s decision to offload half of its workforce.

“[Bithumb’s] trading volume has decreased compared to the previous year, [so] we are trying to provide internal measures. We will continue to add necessary personnel for various new businesses”.

The exchange currently supports trading of 81 digital coin.

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