What are your thoughts on the recent spate of exchange hacks? How will this affect the cryptocurrency market, given that Bithumb intends to reimburse its customers? Let us know in the comments below.
Popular South Korean cryptocurrency exchange Bithumb has suspended all deposits and withdrawals following a hack resulting in the theft of more than $31 million worth of cryptocurrencies. This marks the second Korean exchange hack in as many weeks.
Seoul-based cryptocurrency exchange Bithumb – currently the sixth largest exchange in the world by trade volume – announced shortly before 9 AM local time Wednesday that more than 35 billion won ($31.5 billion) worth of cryptocurrencies had been stolen from the platform in an apparent hack. Deposits and withdrawals on the exchange have been halted while they change out their wallet system to address safety and security issues.
Although it is not yet known which cryptocurrencies were stolen, Bithumb was quick to assure customers that their funds have been moved to secure cold wallets and that any losses resulting from the theft would be reimbursed from the exchange’s own reserves.The Cryptocurrency Market Reacts
The cryptocurrency market reacted swiftly to news of the Bithumb hack, with Bitcoin prices and total market cap both down by more than two percent within a half hour of the announcement.