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

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

North Korean hackers have been pegged in the past for spear-phishing attacks against cryptocurrency exchanges and illegal cryptomining, as they look to generate much needed funds for the Kim Jong-un regime.

Bitcoin's value has slipped once again, following the theft of more than $30 million worth of digital tokens from a cryptocurrency exchange. As at the time of writing this article, the platform hasn't specified the coins taken from the platform.

Post this digital blunder, Bithumb followed up in several tweets: [Notice for the temporary suspension of the deposits] Due to the increasing safety issues, we are changing our wallet system.

Days prior to the hack, Bithumb said on Twitter that it was "transferring all of asset to the cold wallet to build up the security system and upgrade" its database. However, the hackers have stolen worth $30 million worth of currencies via getting hands-on to an opened hot wallet.

Chris Moon at cyber security firm SK Infosec said, "The cryptocurrency exchanges themselves know they are vulnerable to hacking attacks if they store cyber money in online servers".

Bithumb, a cryptocurrency based in Seoul, announced this morning of a hack that stole more than $31 billion from its platform.

"Sorry we can't pay those back taxes, we just got hacked and surprisingly for the exact amount that we owed you, sorry fam". Bithumb said its cryptocurrency holdings were shifted to an offline "cold wallet", and any losses for traders would be covered.

Last week, Coinrail, another South Korean crypto exchange, was hacked, losing possibly more than $40mn.

For now, Bithumb is moving the remainder of its funds into a cold wallet to avoid further risk. Bitcoin was knocked from $6,760 to $6,611 in a matter of hours.

Bitcoin (virtual currency) coins placed on Dollar banknotes are seen in this illustration picture, November 6, 2017. Now the world's 6th largest exchange, Bithumb is surely having a tough mid-week as they also requested the customers to stop payments until they are notified of the deposit at the Vittim password exchange address.

Bithumb has annual profits of around $300 million, so the Bithumb hack shouldn't threaten their long-term survival.

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