Investors in cryptocurrencies were also hit by losses after South Korean virtual currency exchange Bithumb said it had been hacked and $32 million worth of virtual currency held at the exchange was stolen.
Cryptocurrencies dropped after the second South Korean exchange in as many weeks said it was the victim of a theft, renewing fears about the security of digital-asset trading venues. Earlier this year, South Korea's Coincheck revealed it had lost the equivalent of $500 million to online crooks. We will keep notice you of the restart of the service. The first one affected a much smaller exchange Coinrail which lost nearly $40 million worth of cryptocurrencies.
Bithumb said it would fully compensate customers. Those stolen cryptocurrencies will be covered from Bithumb, and all of [our] assets are being transferred to [a] cold wallet. This second attack in less than a month highlights the vulnerabilities faced by cryptocurrency exchanges. A single Bitcoin is now valued at roughly $6,700, having rebounded slightly since the Coinrail Bitcoin heist lows. According to data from CryptoCompare, the price of Bitcoin wasn't really affected and has maintained a strong resistance point around the $6,570 mark, yet this is still bad news for the entire market.More news: AMC Theatres Announces MoviePass Killer: 12 Movies Per Month for $19.95
After deleting the tweet, the exchange just sent out a tweet saying they've suspended deposit and withdrawal services to enhance the security, and no other explanation.
South Korea is a major cryptocurrency trading center and Bithumb is one of the busiest virtual coin exchanges. In April past year, the company suffered a cyberattack that led to the leakage of sensitive personal data of 31,506 users and theft of 4,900 Bithumb accounts.
At press time, Bithumb is now trading over $364 million in 24-hour trading volume, according to data from Coinmarketcap. Bithumb rival Coinrail was targeted by hackers earlier this month in a raid which cost it $37m, around 30% of its total token/coin reserves.
Thursday, the Bithumb team officially confirmed that it has lost $30 million in its hacking attack and its developers and security team have started the recovery process of customer assets.