When Coinrail, another South Korean digital currency exchange, was hacked earlier this month to lose about 30 percent of its cryptocurrency on June 10, the global value of Bitcoin dipped 20.6 percent to $6,300 in less than 48 hours.
According to the Bithumb spokesperson, 100 percent of the coins and tokens traded through the exchange are stored in offline cold wallets.
South Korea is a major cryptocurrency trading center and Bithumb is one of the busiest virtual coin exchanges. It went on to say that all stolen assets will be covered by the exchange, with remaining coins being transferred into cold storage.
The hack is the second time Bithumb has been hacked in the space of a year, and the second Korean exchange to be hacked in just over a week.More news: Florida Man Charged With Murder In XXXTentacion’s Killing, Police Say
South Korea-based Bithumb, the sixth-largest exchange by market capitalization, has asked customers not to deposit any funds into their digital wallets, but assured users that their asserts were safe. "But a portion of the cryptocurrency that was left in our hot wallet to ensure fast transactions had been stolen".
Around 9 a.m. on Wednesday, Bithumb informed the public in a Tweet that it was temporarily suspending deposits and changing its wallet system due to increasing safety issues. Coinrail lost US$28 million (~RM112 million) in the attack. This time hackers made off with $31.6 million of cyber-cash from the Bithumb exchange, according to a BBC report. Bithumb has annual profits of around $300 million, so the Bithumb hack shouldn't threaten their long-term survival.
That said, the decline also coincided with a broader crypto sell-off that followed a Wall Street Journal report that said US regulators were investigating potential price manipulation at four major cryptocurrency exchanges.
To several users, a Bithumb spokesperson said that the company retracted the statement because it was advised by regulators to conduct a comprehensive investigation into the security breach first before releasing an official statement.
Bitcoin lost around 2.2% in the dump, which in the grand scheme of things is nothing unusual.