Coinrail Had Strange Transactions Few Month Before Hack

Local publication said that some banks had identified suspicious transactions at the exchange and stopped providing services to company months before the hack
13 June 2018   1184

The seventh largest exchange of South Korea Coinrail reported its own hacking on Sunday, June 10. The damage was estimated at $ 40 million.

As reports with reference to local media, in February, Korean banks recorded activities related to alleged money laundering, coming from the Coinrail exchange.

Several banks that traded with Coinrail found suspicious money-laundering transactions in Coinrail in February, and some banks took steps to stop their fund deposits in April.

Bank Official

In South Korea, banks have a legal right to refuse servicing crypto exchange if they do not use the system to identify users based on real names, which was presented in January, but has not yet been widely disseminated.

The hack of the Coinrail exchange was the largest in the history of the South Korean market. Another local exchange Youbit has been hacked last year twice: in April and December. After the second episode, the company was forced to report its own bankruptcy.

Currently, Coinrail does not service the trade, and on posted a notice of technical works. It also says that 70% of assets have been moved to cold storage and are safe.

About 80% of the coins that have been confirmed to be leaked have been frozen/ withdrawn/ redeemed or equivalent…while the remainder is under investigation with investigators, related exchanges, and coin developers. The exact damage of the leaked coins / tokens is currently being confirmed, which may require some time with the coins.


"Investigators visited the exchange yesterday to ascertain whether it was an accident or a crime," the Korea Times said, adding that the investigation is being conducted by the police, the Korean Agency for Internet and Information Security and the Ministry of Science, Technology and Information.

New York State to Revise BitLicense Granting Terms

At the moment, BitLicense is the most stringent legal framework for the cryptocurrency industry
23 October 2019   7

The terms for granting the so-called BitLicense, the license required for cryptocurrency companies to work in New York State, will be reviewed. This was stated by the superintendent of the New York Department of Financial Services (NYDFS) Linda Lacewell, reports CoinDesk.

BitLicense is considered the most stringent legal framework for the cryptocurrency industry at the state level. In particular, companies are required to receive it for cryptocurrency transactions of New Yorkers, even if they themselves are based in other jurisdictions.

Last year, Kraken, a San Francisco-based exchange, chose not to receive BitLicense, but to completely leave New York. Earlier this year, the Bittrex exchange (Seattle) also left the state without licensing.

This is a good time to take a look, a responsible look and see how our regime is fitting the current market and … what if any adjustments should we think about making to continue to adapt to sort of a changing industry … that’s going to be one of the things that [we do].

Linda Lacewell

Superintendent, New York Department of Financial Services

At the same time, she called not to “be too happy” about possible changes in the rules for the cryptocurrency industry.

According to her, the current regulatory regime “works well,” but the industry has changed since 2015, when BitLicense was introduced.

How has the industry grown? Has it matured in any way? And I don’t want to get too specific, but you know, it’s a good time for a second look.

Linda Lacewell

Superintendent, New York Department of Financial Services

 Lacewell did not specify when the revision of licensing terms will be completed and what exactly industry participants can expect in the end.

Since the introduction of the license until June 2018, only 6 companies have received BitLicense, but over the past 20 months, after the regulator has softened its position, 16 more companies have been added to their number.