Bithumb, one of the most significant South Korean cryptocurrency exchange, stated yesterday, June 21stm that it teamed up with other crypto exchanges and Korean governmental agencies to apply a reliable method to recover funds recently stolen during a cyber attack.
Participating in this investigation are the Korean Communications Commission, the National Police Agency, the National Internet Development Agency, and the Korean Internet Security Agency (KISA).
Bithumb cryptocurrency exchange announced that it would cover all the clients’ losses
Bithumb is struggling to reduce the damages triggered by the cyber attack on its platform that took place Wednesday when the hackers subtracted about $31 million. Even though the company was undecided regarding whether to announce the theft publicly, it is now clear that Bithumb will indeed cover its clients’ losses and will recommence its regular operation ASAP.
We verified that some of the crypto coins valued at approximately $31,000,000 in cryptos were stolen. The stolen cryptocurrency will be covered by Bithumb and all assets will be transferred to a cold wallet.
The cryptocurrency exchange platform has $1 billion in annual profits, according to 2017 stats, of which $500 million are specifically kept available to compensate for such cyber attacks.
Bithumb also made sure that all deposits and withdrawals from the platform were stopped, as well as the remaining assets were transferred to offline hardware wallets as a security method to avoid further monetary losses.
The South Korean Blockchain Association (KBA) called the cyber attack “shameful”
The South Korean Blockchain Association (KBA) described the theft as “shameful,” while they also noted that the issue is being handled well by cryptocurrency exchange platforms and promises to protect users from future cyber attacks.
The announcement also states that KBA will continue to work to develop and implement standards for the protection of users’ investment in the cryptocurrencies market, to improve the security of cryptocurrency exchange platforms, and to establish standard conditions for the resolution of legal disputes.
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.