Bithumb Working With Other Crypto Exchanges To Recover Hacked Funds

June 21, 2018 4:50 pm Published by

In a website update, South Korea’s Bithumb cryptocurrency exchange, the victim of a multi-million dollar hack earlier this week, said Thursday it may be able to reduce the financial damage arising from the incident, CoinDesk reported.

Regarding the update, the firm said although it has reported losses equivalent to $31.5 million to the Korea Internet & Security Agency (KISA), it may ultimately be able to lower that figure, the report said.

“We have announced about 35 billion Korean won of damages…Bithumb is reducing the amount of damage through ongoing damage recovery, future figures are expected to be lower.” – Bithumb update on recent hack

Explaining the update further, Bithumb said it was working with cryptocurrency exchanges and others to prevent further losses and retrieve the funds, the report said.

In addition, CoinDesk reported, the exchange separates company and customer funds and “The company believes that you can use Bithumb safely.”

Bithumb confirmed Wednesday attackers had managed to access their systems and stolen millions in cryptocurrency, the report said. Thus far, the firm has provided no details on how the attack was carried out or which cryptos and in what amounts were taken, although XRP is believed to have been targeted.

However, the company did reassure customers the remaining assets had been moved to offline cold wallets as a security measure and it has halted all deposits and withdrawals for the time being, the report said.

In a move likely to please customers, CoinDesk reported, Bithumb said it would cover the losses arising from the breach from its own reserves.

In a news release today, the Korea Blockchain Association, a self-regulatory group comprised of exchanges and blockchain startups, called the hack “embarrassing,” but added exchanges taking on hacking losses is “a good way to protect our users.”

CoinDesk Korea reported the agencies helping investigate the breach include the Korea Communications Commission, KISA and the country’s police agency., Jack Durschlag

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