How Bithumb Could Work With Crypto Exchanges To Recover Losses


Recently the news popped up that Bithumb, the South Korean exchange, suffered losses of 35 billion Korean Won after the security of the exchange was breached by an unknown party. As per the media reports, the amount lost is equivalent to $31.5 million. The hack was first reported on 10th June 2018 and an announcement followed that Bithumb will try its level best to recover all their losses by using their own reserves and working with other agencies.

Last Thursday, Bithumb assured investors that it will try to reduce the amount of financial loss that was inflicted by the hack. The news of this hack spread right after the Korea Internet & Security Agency [KISA] confirmed the news on their official website.

The statement from the Bithumb Authorities, right after the confirmation of the hack, says “We have announced about 35 billion Korean worth of damages. Bithumb is reducing the amount of damage through on-going damage recovery, so future figures are expected to be lower.”

Bithumb Hackers still unknown

Bithumb has been working on recovering the hacked amount of money after they confirmed that attackers had managed to access their systems. Where the news of loss of millions to the attack came out there, it has been disappointing to know that the firm has not provided any information on how the attackers managed to breach the security. As per the media reports, it has been said that XRP was targeted by the hackers through which they managed to steal millions of dollars.

Bithumb stops all deposits or withdrawals

Bithumb has been quick to declare that all remaining assets are safe and have been moved offline to cold wallets for security purposes. It has stopped any further transactions for the time being. In a press release issued on 21st June 2018, a self-regulatory group involving exchanges and blockchain startups called the hack “embarrassing” but also appreciated the steps of Bithumb to promise compensation for losses.

As per the recent reports, KISA [Korea Internet & Security Agency] and the national police agency are working together in the investigation to find out the cause of the breach.