Economy

Hackers hit South Korean cryptocurrency exchange for $31.5M

Hackers hit South Korean cryptocurrency exchange for $31.5M

Bithumb, ranked seventh in the world by traded value on Coinmarketcap.com , said on Wednesday that about 35 billion won ($32 million) worth of coins were stolen.

For now, Bithumb is moving the remainder of its funds into a cold wallet to avoid further risk. "However, this loss will be compensated by Bithumb's own reservoir, and all assets of our customers are securely saved in Bithumb's cold wallet, hence all asset is completely safe and secured".

About 35 billion won (roughly $31.6 million) worth of virtual currency was stolen in a hack on South Korean cryptocurrency exchange Bithumb, Reuters reported Tuesday.

What just happened? For the second time this month, a South Korean cryptocurrency exchange has been hacked and suffered millions of dollars' worth of losses.

Due to the increasing safety issues, we are changing our wallet system.

"All deposit and withdrawal services will be stopped to make sure [of our] security".

On June 16, Bithumb announced an abrupt server check "in order to maximize security settings".

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The logo of Bithumb is seen at its cryptocurrencies exchange in Seoul, South Korea, January 11, 2018. At time of writing, cryptocurrency news service Coindesk recorded a almost 2 percent drop in Bitcoin value from Tuesday.

Still, the frequency of cryptocurrency exchange hacks is something that will leave many traders anxious.

Bitcoin, the largest cryptocurrency, dropped as much as 2 percent and was trading at $6,598 as of 10:06 a.m.in Hong Kong, bringing this year's decline to 54 percent, according to Bloomberg composite pricing.

Before the Bithumb hack, the market appeared to be recovering as it gained more than $12 billion in total market capitalization.

However, this isn't the first time it has been a target for cyber-attackers.

Do you think the Bithumb hack will cause a massive dip in the prices of cryptocurrencies?