The seventh largest exchange of South Korea Coinrail reported its own hacking on Sunday, June 10. The damage was estimated at $ 40 million.
As Bitcoin.com 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.
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About 80% of the coins that have been confirmed to be leaked have been frozen/ withdrawn/ redeemed or equivalent…while the remainder is under investigation with investigators, related exchanges, and coin developers.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.