Bithumb hijacked

Hackers stole billions of wons from largest South Korean cryptocurrency exchange
04 July 2017   1999

Is the first decentralized peer-to-peer payment network that is powered by its users with no central authority or middlemen


Distributed database that is used to maintain a continuously growing list of records, called blocks

Largest South Korean cryptocurrency exchange Bithumb reported about "billions of wons" stolen by the hijackers. BraveNewCoin reports about it.

Due to last week cyberattack, hackers was able to stole personal data of 31 800 Bithumb users. That's 3% of all exchange's clients base. 

Stolen data consists of names, cellphones and email addresses of users. Local newspaper Kyunghyang Shinmun reported that one user lost around 8700$ due to hacker attack.

Bithump located the hijack on 29th of June and called the police on the next day. Also, more than 100 users contacted More than 100 users contacted the National Police Agency's cybercrime report center.

Representatives of Bithumb argue that there was no direct access to the users' accounts and that the attack was not directed to the internal network of the exchange servers or wallets, but to the computer of one of the Exchange's employees.

After the theft of user data from the computer employee Bithumb fraudsters engaged in "voice phishing". So, one of the users said that they called him, introduced themselves as a Bithumb employee and asked to dictate a one-time password sent by email. After the client of the Korean stock exchange complied the request of the "employee", from his account were stolen bitcoins in an amount equivalent to $ 8,700.

The newspaper also says that despite the fact that the exchange appealed to the law enforcement agencies of the country, about 100 injured clients plan to file a lawsuit against Bithumb.

Bithumb also announce that it is going to refund up to 100 000 wons per a person (around 870$). The remaining payments will be made after the final amount of losses has been accurately determined.

While it remains unclear what kind of legal responsibility the trading platform will bear for lost user funds. The situation is significantly complicated by the absence in the country of regulatory and legal regulation of the regulation of the crypto-currency sphere. 

Israeli BTC Investors to Face Catch 22

They need to pay taxes from Bitcoin investing in order to avoid their property arrest, but banks don't take their money due to AML issues
06 August 2019   132

Bitcoin investors in Israel are faced with the impossibility of paying taxes, as local banks refuse to accept funds received from the sale of cryptocurrencies because of the risks of money laundering and terrorist financing. About this writes the local edition of Haaretz on August 6.

Bitcoin is not recognized as a currency in Israel, therefore, individuals must pay 25% of the income from cryptocurrency trading to the treasury, and legal entities - 47%.

Investor Ron Gross told the publication that he acquired bitcoins in 2011 and reported his income to the tax office. In 2017, the bank that served Gross began to refuse to accept funds received from the sale of bitcoins. The investor met with representatives of the bank to demonstrate to them a 70-page history of bitcoin transactions as confirmation of the origin of the funds, but failed to convince them.

The tax authority is aware of the problem, but they say the ball isn’t in their courts. I’ve tried working with almost all the banks, but the minute they hear the word ‘Bitcoin’ they freeze up.

Ron Gross

Bitcoin investor from Israel


Since Gross was unable to pay taxes on time, his bank account, home, and even scooters were arrested. According to the investor, the tax authorities know about the problem, but can do nothing.

According to Haaretz, the tax office is aware of $ 86 million in unpaid taxes on income from cryptocurrency trading. It is possible that the real amount may be significantly higher.

Roy Arav, another Bitcoin investor, kept the proceeds from trading Bitcoin in an account with Israeli bank Discount under the control of the Bit2C exchange. The bank refuses to transfer money to Arava’s personal account under the pretext that its politicians forbid it to transfer funds related to virtual assets to client accounts due to the risks of money laundering and terrorist financing.

Arav also could not pay taxes and was forced to sue the bank. According to the investor, the authorities entered his position and granted him a deferral of time for the consideration of the claim.