Bithumb hijacked

Hackers stole billions of wons from largest South Korean cryptocurrency exchange
04 July 2017   1040

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. 

Bank of America: Cryptocurrencies Are a Threat

Bank of America (BoA) has admitted to US regulators it can not pretend any longer that cryptocurrencies are not a threat
23 February 2018   136

On February 22, the report was filed with the US Securities and Exchange Commission (SEC). It listed a range of economic, geopolitical, and operational risks that the Charlotte, NC-based bank faces as it heads into the new fiscal year. Crypto adoption was on the list for the first time.

Bank of America (BoA), which recently banned purchasing of crypto with credit cards, stated that this and other similar policies could cost the bank clients.

Clients may choose to conduct business with other market participants who engage in business or offer products in areas we deem speculative or risky, such as cryptocurrencies.

The second largest bank in the U.S. said that adoption of cryptocurrencies could require the bank to make “substantial expenditures” to update its existing services and remain competitive with upstart firms.

The widespread adoption of new technologies, including internet services, cryptocurrencies, and payment systems, could require substantial expenditures to modify or adapt our existing products and services.

According to the Bank of America, cryptocurrencies could limit the institution’s ability to comply with anti-money laundering regulations.

Eventually, this is one of the first public admissions that financial institutions are beginning to worry that mass cryptocurrency adoption could one day become a reality.