The Bitcoin (BTC) price has lost more than 10% this weekend after South Korea’s Coinrail cryptocurrency exchange platform confirmed that it was hacked. This latest cyber attack, once again, calls into question the security of cryptocurrencies.
The Coinrail cryptocurrency exchange platform has acknowledged that it has lost 30% of the coins it stored, with an estimated value of around $40 million according to local media, following a rapid cyber attack.
Although the platform does not exchange Bitcoin (BTC), the news has led to Bitcoin (BTC) hitting a low of $6,652, the lowest level since last April when it hit $6,620.
Since December 2017, BTC has fallen 65%, from its highest value against the USD, $20,000.
“Coinrail is not a member of the group that promotes self-regulation to improve safety. He’s a minor player in the market and you can see how those small platforms with lower safety standards can be exposed to more risk,” said Kim Jin-Hwa, a representative of the Korea Blockchain Industry Association, cited by Reuters.
South-Korean cryptocurrency exchange platforms are still facing security issues despite crypto regulations in this regard
In January, 14 Korean platforms committed to improving their security and adopting measures to further protect the user, including restrictions on creating more than one account.
Coinrail has reported that the remaining 70% of digital currencies it moved are now housed in a portfolio that is not connected to the main network. Authorities are investigating the theft and exchanges on the platform have been suspended.
Asia has a long history of cyber attacks as it is considered a world’s leader when it comes to the cryptocurrencies market. Earlier this year, Japan’s Coincheck platform was hacked into a half-billion-dollar cryptocurrency robbery.
In 2014, Mt. Gox, which once handled 80% of the world’s Bitcoin (BTC) exchanges, filed for bankruptcy after losing around half a trillion dollars worth of BTC.
Even more recently, in December last year, South Korea’s cryptocurrency exchange platform Youbit has filed for bankruptcy after being hacked twice.
Jackson Bey was born and raised in Lethbridge Alberta but moved east when he was 22. Apart from running his own consulting firm. Jackson spends his time canoeing the many lakes of Ontario. As a financial journalist Jackson has published stories for CBC Business Online, as well as Buzz Feed and Motherboard. As a contributor to Billionaire 365, Jackson mostly covers markets and trade.