Bithumb Crypto Exchange Hacked For $31 Million

On Wednesday, close to 35 billion Korean Won (~$31 million) in cryptocurrency was stolen by hackers from Bithumb, the South Korea-based Crypto Exchange.
The fact that Bithumb now ranks as the sixth biggest trading venue in the world still marks it as a noteworthy, and worrisome, incident.
While more details about the heist have surfaced in the hours following the event’s confirmation, providing a glimpse into Bithumb’s internal operations, some important aspects and details about the hack still remain unanswered.

What Happened?

XRP compromised

While Bithumb hasn’t yet disclosed, news emerged following the hack that XRP, the native token of the XRP ledger and the world’s third-largest cryptocurrency, has been targeted.
Based on data from CoinMarketCap, Bithumb accounted for 10 percent of the global trading volume of XRP over the last 24 hours, with a total of $32 million-worth changing hands.

IT improvement failed

Bithumb had conducted a precedented Security Enhancement on June 16, just a few days prior to hack.
The exchange stated at that time,

bithumb Bithumb Crypto Exchange Hacked For $31 Million Screenshot 2018 06 21 14
Bithumb Official Satetement

At the same time, Bithumb also started moving users’ assets to a cold wallet to store cryptocurrencies in a more secure offline environment.

Government pitches in

An hour before Bithumb confirmed the hack on its website and official Twitter account, the exchange reported the case to the Korea Internet & Security Agency (KISA), a government organization that supervises internet and cybersecurity issues in the country.
A dedicated analysis team is currently in the process of investigation, as per KISA Officials.

Bitthumb to Refund Users

Immediately after announcing the hack, Bithumb confirmed it will pay back victims using its own reserves.
Industry experts later weighed in, including bitcoin pioneer Charlie Shrem, who praised the move despite the unwelcome incident.
Bithumb hacked for $30 million but covering all losses. Out industry is getting better and stronger,” he tweeted.

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