22 Jun 2018
South Korean exchange Bithumb hack aftermath: the exchange might reduce the initially reported losses. Bithumb works with cryptocurrency exchanges and other organizations in order to prevent further losses and help retrieve the funds.
22 June, AtoZ Markets – Following the latest Bithumb cryptocurrency exchange hack, the South Korean company has stated it might be able to downsize the financial damage caused by the attack that took place earlier this week.
The company has published an update on its website. It has stated that even though it has reported losses of $31.5 million to the Korea Internet & Security Agency (KISA), it is possible that it will be eventually to reduce this figure. The exchange has explained:
"We have announced about 35 billion Korean won of damages ... Bithumb is reducing the amount of damage through ongoing damage recovery, future figures are expected to be lower."
It further stated that it was collaborating with cryptocurrency exchanges and some other organizations in order to prevent further losses and help retrieve the funds. Bithumb has added that it keeps company and clients’ funds separately. The exchange has also notified its clients that they can use Bithumb safely.
Earlier this week, we reported that Bithumb has been hacked. The company has made a public announcement where it stated that the hack took place between late Tuesday night until early Wednesday morning local time.
That time, Bithumb has also stated that other assets have been transferred to a cold wallet that stores cryptocurrencies offline. This wallet is not accessible via the Internet. The exchange has highlighted that investors should "immediately discontinue depositing cryptocurrencies until further notice."
The Korea Blockchain Association has issued a release today calling the hack “embarrassing.” The self-regulatory group that includes exchange and some of the Blockchain startups has also added that exchanges taking on losses of clients is "a good way to protect our users." It also added:
"We will continue to establish standards for user protection such as security, standard conditions and dispute settlement procedures that cryptocurrency exchanges should have. "
As per today’s update, there are several agencies that are aiding the investigation of the Bithumb hack. These include the Korea Communications Commission, KISA, and the National Police Agency.
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