South Korea and the crypto markets experienced two turbulent weeks.
The chain-of-events started on June 9th, when Coinrail was hacked. The losses were estimated to be more than $35 million worth of cryptocurrencies. Officially there is still no confirmation about the exact amount of tokens lost.
There was a blog post by a third-party firm, which was assisting Coinrail in the day after. This saw for a quick drop in the market, but it wasn’t anything too significant. Unfortunately, things did not end there.
A little over a week afterwards, Bithumb got hacked as well. Bithumb is the second largest Korean crypto exchange. The company was quick to take measures to prevent further losses. Customers were reassured that their assets were stored in cold wallets. All of the affected customers would be compensated.
Hackers were unable to reach the rest of the assets. In their official website, Bithump estimates the losses to be around $31 million.
The bear market, which took the bitcoin price down like 2014 caused a big uproar on social media. The community’s uproar was huge, but they can only wait and watch. The weight falls entirely on the South Korean government’s shoulders.
Korea is already taking strong measures
There is currently an ongoing investigation lead by the Korea Internet and Security Agency (KISA). They are also receiving assistance from the Ministry of Science, Information and Communication Technology. The investigation is currently focused on both hacks, but is yet to disclose any information to the general public.
South Korea has experience with these sorts of heists since last year Youbit, was hacked for $73 million worth of bitcoin. The exchange was very respectable, but unfortunately had to file for bankruptcy last December.
There was quite a bit of speculation around the possibility of the culprit behind the heist to be North Korea. This is by no means the first time the South Korean National Intelligence Service has suspected their counterpart to be behind cryptocurrency attacks.
These attacks supposedly are a method used to evade financial sanctions. The world is still making sense of what happened, but despite the rough two weeks, support for cryptocurrencies in South Korea remains strong.
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