South Korean Exchange stolen for Millions of Dollars

Bithumb, one of the largest cryptocurrency exchanges in the world, has been hacked to the tune of 35 billion won, has to repay customers from its own pocket
20 June 2018   471

All the deposits were stopped by the exchange at approximately 00:53 UTC and started transferring large amounts of Ethereum into cold wallets. Cold wallets are digital wallets that are not connected to the internet. As claimed at the local news outlet JoongAng Daily, the company performed an “urgent” security check on the 16th of the month, particulary preparing to move passwords to a cold wallet in preparation for an attack.

Bithumb on Twitter
Bithumb on Twitter

Actually the hack happened on the 19th, according to CoinTelegraph Japan that refers hack detection service Sentinel Protocol. Ripple was among the  stolen denominations. Bithumb has undertaken to repay clients from its own pocket, according to JoongAng Daily.

If you have any damage to your password, I will make full compensation to your company. I do not have any damage to you, so please do not be anxious.
Bithumb
South Korean Exchange on their Twitter

In July 2017 Bithumb was also hacked, when the personal data of 30,000 users was stolen. The scammers used this information in order to access money in many people’s accounts. Nevertheless, the exchange valued its profits grew by 171 percent during the year of  2017. It was processing around $200 million in cryptocurrency trading a day, and today that figure is $400 million, making it the sixth biggest crypto exchange in the world in April 2018.

It collaborated in January with the a major shopping mall in South Korea, enabling cryptocurrency payments at outlets on the site. In March it declared about the plans to introduce Bitcoin ATMs and Bitcoin payments at food kiosks over a partnership with some local kiosk manufacturers.

Korean Exchanges to Ban Withdrawal for Unverified Users

This decision was made by Bithumb and Coinone for anti-money laundering policy implementation
18 September 2018   259

Bithumb and Coinone will deprive unverified users of the possibility to withdraw funds, Bitcoin.com reports.

The possibility of withdrawing the crypto currencies to Bithumb will be discontinued on October 1 for corporate market participants. For individual users, this restriction will take effect on October 15. According to the representatives of the exchange, the decision was made to implement the requirements of the anti-money laundering policy.

Representatives of the trading platform stressed that the limitation concerns only the possibility of issuing fiat funds.

The South Korean authorities ordered local crypto-exchanges to verify users in January. Exchange customers can use the so-called "real name system" to convert their accounts into verified and linked to the accounts of banks cooperating with platforms.

However, by now banks have provided this service only to the four largest South Korean exchanges - Bithumb, Upbit, Coinone and Korbit. Moreover, despite the efforts of the government, banks and the cryptoexchanges themselves, only 40-50% of traders took advantage of this service. At the same time, local banks exert pressure on the exchanges, so that the latter more actively comply with the requirements of the anti-money laundering policy.

A similar statement was made by the Coinone Exchange, all unverified users of which will not be able to withdraw Fiat after October 15.