the hack of popular South Korean cryptocurrency exchange Bithumb

[Retina]

I think this news is sad news for crypto world Many investors are facing a hesitant conflict, If such incidents happen, many will lose their confidence 
What is your opinion? Do you think it would have an impact on the crypto market?

Click image for full mews.

[Notice🔔]
We deeply apologize to our members for delaying the cryptocurrency deposit and withdrawal service, we would like to inform you of the circumstances of the grounds and confirm that your assets are safe.
For more details >> https://t.co/dOvT78P0sK

— Bithumb (@BithumbOfficial) March 30, 2019

[mk4]

It was an insider mistake, not a hack(based on what they said, at least).



Full announcement post(english translation on the bottom): https://cafe.bithumb.com/view/board-contents/1640037

Also, they claim that their user's funds are left untouched.

[hacker1001101001]

After the recent cryptopia hack, most of the people's were already shocked and doubted on the securities involved in crypto.

But after the Bithumb hack, I think it can increase the doubtablity of many investors in crypto. As per the above mentioned article they were attacked internally by some staff members. This looks like an very unprofessional reason to me and this should not happen often on an international level exchange.

I think yes, this is pretty disappointing to most of the crypto community overall.

[PrimeNumber7]

I think yes, this is pretty disappointing to most of the crypto community overall.

In 2018, and late 2017, there were billions of dollars worth of crypto stolen from major exchanges, that mostly covered the losses out of operating profits. Some may have been operating with fractional reserves, it is hard to know for sure. In comparison, this hack is nothing.

Many exchange operators do not  have sufficient risk management experience to keep themselves safe from theft. High profit margins and trading volumes have previously kept exchanges solvent after hacks. A good rule of thumb for exchanges is to keep no more than one month's profit worth of crypto in hot wallets, so the exchange could "earn" their way out of a hack within a month, but I cannot imagine Bithumb making more than $30 million/month in the current downturn. Bithumb is also most probability faking most of their volume, but that is another story....

[kingpin4321]

Well this is a very sad news. When ever an exchange is hacked numerous individuals loses there funds in the exchange. That why it advisable not to leave you coins dormant on an exchange rather send it back into your wallet.
And the sad thing here is that exchanges that where hacked do not give any form of compensation to affected client

[Awesomus Maximus]

When they say "accident involving insiders" it can mean any number of things. It would be nice if they give us more specifics. For example did these insiders by any chance have access to the cold wallet. On the other hand they did also say their cold wallet funds are not affected. This is reassuring because they keep the assets of their users there, so the users' funds should be well protected. BTW, is their cold willed multisig?

[Bitcoin_Arena]

This is one most disappointing thing and  most scary too about cryptocurrencies and anything related to them especially exchanges and wallets. They have turned out to be the biggest target for hackers and i don't think it's about to stop.

[btc-facebook]

Well this is the negative side of crypto world and an exchange, it's so vulnerable to be hacking, and people plus investor will lose so much money because of it.
But yeah putting our assets in the exchange is a bad decision, offline wallet is more secure because the security is more higher and we can control it by ourself.

[joniboini]

Bithumb has been hacked so many times IIRC. Sad to see another major exchange in Asia got hacked again. It's interesting how these Asian exchanges suddenly got hacked one after another. How could that happen? Same weakness in security (except for Bithumb, which they called involving insider act)?

[r1s2g3]

I hope investor will not lose any fund in this incident. I am just wondering whether crypto is really an easy target or the proper safety standards/ guidelines are not getting followed here? Or it is normal (this much of hack attempts succeed) in any industry.

[pooya87]

it is not longer sad or shocking or anything like that to anybody who has been around for at least a couple of months, let alone a couple of years. we have seen many of these types of "exchange hacks" most of which were either an insider job, or the exchange itself fake a hack while scamming its users.
this is nearly a very common thing for exchanges to get "hacked" which is why everyone always repeats the same thing as "you should never leave any coins on exchanges". hopefully in a year or two we can see the current decentralized exchanges gain more popularity and grow in size so that they can replace these unsafe centralized ones.

[TalkStar]

There's been a couple of incidents happened like this and honestly I feel so sad when i hear hi kind of news. I have seen several times bitcoin price going down due to this kinda exchange hacking issue because it has got a negative impact on whole crypto universe IMO. Specially its really unexpected and annoying for the trader who lost their fund on these kind of exchange hacking incidents.

I hope in future crypto exchanges will integrate strong security system on their website to stop those hackers. Otherwise its simple that sooner or later their users will left their exchange.

[Sonu_titu]

I read that the hacked funds are traded using EOS. I is really scaring to store funds on Exchange.

[gentlemand]

My estimation of South Korean competence has gone down an awful lot since I've observed their forays into crypto.

The government literally had no regulation in place at all. You could start an exchange with an online sales licence, the same type that you needed to sell bits of paper or socks. They appeared to do nothing to police it until the explosion had been and gone.

There've been multiple hacks. The South Korean population have thrown up countless stories of them ruining themselves and it's also the pumpiest and dumpiest market of all, observe Bitcoin Gold having much higher volume than Bitcoin itself.

They need to go to the naughty step and remain there for quite some time.