As we mentioned earlier, criminals have broken into the cryptocurrency exchange Bithumb. The material losses accounted to $30 million. Since Bithumb is the 6th largest cryptocurrency exchange of the world, such an event could not go unnoticed and without consequences.
In a couple of hours after the hack, the market fell drastically. The decrease of capitalization was around $6 billion. Even the top-cryptocurrencies of the rating were affected and lost their positions.
According to the social network TradingView:
This is not the first time Bithumb was hacked. The exchange suffered three attacks in the last year. However, the latest and hopefully the last one was the most severe one due to immense losses of money.
The attack actually began a couple of days ago. The Bithumb developers and software engineers tried to protect the exchange, but the hackers turned out to be smarter. Nevertheless, most of the funds were transferred to the cold wallet in time, so the criminals could not get them.
The South Korean cryptocurrency exchanges are quickly losing trust of their customers due to a high risk of hacking. The security systems of these exchanges definitely require improvements and upgrades.
Korean officials believe that the current regulatory framework is failing to protect cryptocurrency assets. The government of the country has already started working on this issue. All the digital currency exchanges will be treated as banks. Hopefully they will succeed, and we will not have to write about another hacker attack.
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