Bitcoin price tumbles after USD 31 million hack on Bithumb cryptocurrency exchange

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Bitcoin price tumbles after USD 31 million hack on Bithumb cryptocurrency exchange

Bithumb is considered as the home for many of the world’s largest trading centres. On the 20th of June, 2018, it became the second cryptocurrency exchange which was hacked this month, in South Korea. Also, it marked the second time that the exchange was breached in less than a year.

The effect of the Bithumb Hack

The Bithumb exchange had announced that the hackers seized about $31 million cryptocurrency from the online vaults.
It has been recovered ever since but the hack had resulted in the downfall of the bitcoin prices by $200 in less than an hour. Clearly, the crypto-security was in debate all over again.

One of the professor of Cyber Security at the Ulster University, Kevin Curran, who is also a senior IEEE member, mentioned the following to The Independent –

“Unlike traditional banking mechanisms, blockchain currencies can be stolen and moved to thieves’ accounts with no means of recovery. Nothing can bring it back. This is a real and ever-present danger with cryptocurrencies and there have been ever-increasing incidents of coins being stolen, as seen recently.
Ultimately, remember that the European Banking Authority and others have warned that bitcoin users are not protected by refund rights or chargebacks. Because of this, many people believe the risks outweigh the benefits.”

The Bithumb had mentioned the entire scenario with a series of tweets on its official Twitter handle. Excerpts –

“All deposit and withdrawal service will be stopped to make sure the security. We will keep notice you of the restart of the service. We apologise for your inconvenience and thanks for your understanding”

The exchange also told it would reimburse customers for any losses sustained due to the hack. But they later deleted the tweet.

 

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