Bithumb hack investors repaid: Another week, another crypto exchange hack. Last Monday, June 11, the world awoke to the news of the Coinrail hack. This week, another South Korean exchange was also hacked. This time around it was Bithumb. In the Bithumb hack, roughly $30M in digital assets was stolen.
Don’t worry, though – Bithumb has confirmed that investors will be fully compensated.
Bithumb Hack: How it Went Down
On Wednesday, June 20th, Bithumb posted on social media that the crypto exchange had been hacked, with the amount lost totaling to $30M. Of course, this caused immediate panic in the crypto sphere.
Before the fear could spread, however, Bithumb retracted its statement shortly after it was released. This plan backfired, as Bithumb deleted its statement without providing any clarification on the matter, causing the public to become more upset and panicked.
The reason for the retraction, according to a Bithumb spokesperson, is that the company needed to finish its investigation into the breach first. After that, the public could be informed.
That’s exactly what happened today, June 21st.
The Real Details: Bithumb Hack Investors Repaid
Today, Bithumb confirmed that a hack did take place, and a total of $30M was lost. While the amount lost is severe, developers and the Bithumb security team are already waist-deep in the recovery process of customer assets that were stolen. Bithumb is working with KISA to recover some of the funds that were stolen.
This could have been a lot worse. Bithumb could have been late on reporting the incident, which means portions of the funds could have been unrecoverable by then. Plus, Bithumb (though this would have sparked public outcry) could have chosen not to compensate investors for the losses.
Bithumb posted two statements regarding compensation, with one saying “the amount of damage that occurred this time will be fully covered by Bithumb’s own company fund.”
Then, on Twitter, the crypto exchange wrote:
We care about you guys , and we have something that will compensate your loss if you had any. Either way you can join !
— Bithumb (@BithunbOfficiaI) June 21, 2018
The Bithumb Hack Takeaway
The hacking of crypto exchanges is not new. Many have fallen victim to it, while others are waiting for their turn. And when it comes to all exchanges, the challenge is protecting user funds. That’s why it’s so serious when a crypto exchange hack occurs.
Luckily, the Bithumb hack was resolved quickly, and a solution is on the way. The amount lost is still bad, but hopefully, Bithumb will be able to learn from this and perhaps add additional security features.
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