[2018-06-20] BTC to fall after massive $30 million HACK heist in South Korea

[micko09]

BTCITCOIN was dealt another blow last night after South Korean cryptocurrency exchange Bithumb said $31.5 million was stolen by hackers causing the principle coin to fall from $6,742 to $6,562.

South Korean exchange Bithumb said in a notice on its website on Wednesday that it had stopped all trading after ascertaining “some cryptocurrencies worth about 35 billion won were seized between late yesterday and early morning today.”

The exchange, thas now moved “all clients’ assets in safe cold wallets,” which operate on platforms not directly connected to the internet, adding that customers affected would be fully compensated.

Mun Chong-hyun, chief analyst at ESTsecurity, warned that cryptocurrencies represent an ideal target for hackers.

He said: “No security measures or regulations can 100 percent guarantee safety of virtual coins. It is held anonymously and in lightly-secured systems, which makes them an irresistible target."

Read more, https://www.express.co.uk/finance/city/976816/Bitcoin-price-ripple-cryptocurrency-ethereum-BTC-to-USD-XRP-news

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[flavio.rib]

For one way they stole 31.5m other way there is a news that someone inject some money on cryptomoney... well crazys days?

[Denker]

As for now it looks like Bithumb will compensate the loss.
However this just shows how important it is to develop decentralized exchanges.
Centralized exchanges will always be a target for hackers, especially when the price will rise to new highs again.
That also shows how important risk management is. If you trade, only use a fraction of your coin holdings. Not your keys, not your Bitcoin!
Always keep that in mind.

[monkeydominicorobin]

BTCITCOIN was dealt another blow last night after South Korean cryptocurrency exchange Bithumb said $31.5 million was stolen by hackers causing the principle coin to fall from $6,742 to $6,562.

South Korean exchange Bithumb said in a notice on its website on Wednesday that it had stopped all trading after ascertaining “some cryptocurrencies worth about 35 billion won were seized between late yesterday and early morning today.”

The exchange, thas now moved “all clients’ assets in safe cold wallets,” which operate on platforms not directly connected to the internet, adding that customers affected would be fully compensated.

Mun Chong-hyun, chief analyst at ESTsecurity, warned that cryptocurrencies represent an ideal target for hackers.

He said: “No security measures or regulations can 100 percent guarantee safety of virtual coins. It is held anonymously and in lightly-secured systems, which makes them an irresistible target."

Read more, https://www.express.co.uk/finance/city/976816/Bitcoin-price-ripple-cryptocurrency-ethereum-BTC-to-USD-XRP-news

It is set to fall? Is it Bitcoin's fault that they have hired incompetent people to handle their business. You don't sleep just because your business is online and third party security services tasked to protect your web application service says that they will provide top notch service. That is a very stupid procedure in running a business. This is the classic case of what I have just illustrated. You may have the best application service in the world but if all you do is  ignore cyber security don't blame Bitcoin.

[dothebeats]

Usually when a hack is publicized, the effects would already manifest in the market within minutes, but apparently this one one hasn't and it's been hours. Glad to know that Bithumb would take responsibility of the losses their users may have incurred during the said hack so all is good. One thing though, it might be best for exchanges to overhaul their security systems after one has been breached given that hackers may have already known the inner workings of their systems. It could be a pain for the operators but in order to prevent hacks in the future, one must ensure that their assets are secured. This is not the first hack on exchanges, and surely, this wouldn't be the last.

[zanhef24]

This is bad for all of us this will cause panic to the investors and the price will go down.If exchange is hack  might thier security is not so much better maybe its time to recruit the programmer in their country.

[patron bounty]

I think this is not a bitcoin error, but it is the exchange responsibility to guarantee and compensate for those who have invested.
This may give a bit of a fear to the novice investor and harm the exchangers but as long as the exchangers are willing to give compensation money to investors, they will not lose interest from buyers.

[dbshck]

Usually when a hack is publicized, the effects would already manifest in the market within minutes, but apparently this one one hasn't and it's been hours. Glad to know that Bithumb would take responsibility of the losses their users may have incurred during the said hack so all is good.

There's a slight drop from $6750 to $6550 right after the hack announced. But yeah, the effect was not as bad as we expect. I was expecting a dump to sub $6K. I guess it has to do with the full reimburse that BitHumb will cover.

You may have the best application service in the world but if all you do is  ignore cyber security don't blame Bitcoin.

They have been the largest South Korean exchange for some time, pretty sure they didn't simply ignore their security. Setting up a hackproof system maybe not as easy as it sounds.

[jamesashmore1964]

The USA is going to work in NY. Let’s see how they take it as they get up across the USA!

[Script3d]

This is bad for all of us this will cause panic to the investors and the price will go down.

well not for all of us whales can take advantage of it.

If exchange is hack  might thier security is not so much better maybe its time to recruit the programmer in their country.

this makes me laugh who do you think makes the website cashier?

You may have the best application service in the world but if all you do is  ignore cyber security don't blame Bitcoin.

They have been the largest South Korean exchange for some time, pretty sure they didn't simply ignore their security. Setting up a hackproof system maybe not as easy as it sounds.

there's no way they will simply ignore it there might be some shady stuff going on if they ignore it. i think its impossible to make a system that can't be hacked. that's why we need decentralized exchange.

[Kingofbitcoin12345]

There is something common on this so called hacking incidents on exchanges.. They all compensate the lost of they’re investors promptly after a confirmation of each crime.. I know that speculation on whether an inside job is presents the important thing is the administration is openly announcing it for transparency..

It can affect the price,, but whoever makes this into a much bigger issue only wanted more lower bitcoin price than the concern for community.. This is sad,, self interest are signs of greed..

[HukoJla]

I am again convinced that due to such mistakes we do not see new big investors. To date, there is no exchange with which you can confidently trade without having to worry about being hacked. I hope that the exchange will return funds to build users who were built because of their mistakes.

[BitcoinHodler]

"to fall"? you mean as in it will fall in the future because of the news that was spread in the past?!!!
i don't know how familiar you are with the market but when a news like this comes out, the effects are right away. meaning if we were to have such a drop then it would have already happened!!!

the news came out a very long time ago and the market has not moved at all so far and it won't move in the future either. and if it moves it won't be because of this because it would be too late to react.

[Coffee135]

Nothing will. The one who has already suffered from a hacker attack can not do anything. All other users will not give up the income they receive with the help of cryptocurrencies because of the hacking of the next exchange. Everything will be the same as it was the price of bitcoin will not be lower at the bottom.

[rat03gopoh]

When bithumb stops all trading activities, it will affect the number of bitcoin in the world which means to be reduced at this time. But why does this case make bitcoin prices go down? This situation seems to be against the law of demand in the economy. this confuses me.

[r32godzilla]

Nowadays we could see such news about exchanges being hacked regularly which was a very rare news in earlier times when Mt.Gox got hacked.Such incidents strongly affect bitcoin price but this time,the impact is not much bigger.

[rodalutor]

What a big old load of sensationalism. This hack will have little to no effect on the price, firstly they said they'd cover it. Secondly it's 30 million. That's next to nothing in terms of the crypto market which is worth hundreds of billions of dollars.

[joulion86]

I'm amazed that we only dropped like 200$ and nearly immediatly bounced back from it. Seems like we really hit rock bottom =)

[Zeppelins]

BTCITCOIN was dealt another blow last night after South Korean cryptocurrency exchange Bithumb said $31.5 million was stolen by hackers causing the principle coin to fall from $6,742 to $6,562.

South Korean exchange Bithumb said in a notice on its website on Wednesday that it had stopped all trading after ascertaining “some cryptocurrencies worth about 35 billion won were seized between late yesterday and early morning today.”

The exchange, thas now moved “all clients’ assets in safe cold wallets,” which operate on platforms not directly connected to the internet, adding that customers affected would be fully compensated.

Mun Chong-hyun, chief analyst at ESTsecurity, warned that cryptocurrencies represent an ideal target for hackers.

He said: “No security measures or regulations can 100 percent guarantee safety of virtual coins. It is held anonymously and in lightly-secured systems, which makes them an irresistible target."

Read more, https://www.express.co.uk/finance/city/976816/Bitcoin-price-ripple-cryptocurrency-ethereum-BTC-to-USD-XRP-news

This has already become an annual summer tradition. And again, South Korea participates in this. Such incidents are more like manipulating the market.

[BrewMaster]

I'm amazed that we only dropped like 200$ and nearly immediatly bounced back from it. Seems like we really hit rock bottom =)

that is what i was also thinking and that is why i am taking this as a good sign that we are at the bottom. despite this news which has been spread like wildfire in the past 10-12 hours the market is still pretty solid and price has even risen to $6841 which is a record in the past 8 days.