Hacked Bithumb Pledges to Repay Losses
Main page News, Hacker attack, Cryptocurrency exchanges, South Korea

Bithumb, a South Korean-based cryptocurrency exchange once again stated that the platform has become a victim of a cyber attack and promised to return the stolen funds to their users. The announcement was made on the company's official Twitter.

Why it is important

  1. The exchange promised to compensate the loss their users have incurred in the first statement, which came right after the attack, but then these posts were removed from their Twitter page.
  2. Some (including the famous bitcoin investor Tuur DeMeester ) suggested that the stolen amount was much bigger than the $31 million announced. Others wrote that the theft was a set up enabling Bithumb to avoid paying a hefty tax bill.

The new statement says that the amount of damage will be covered in full through Bithumb’s own funds, which is estimated at $450 million.

"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."

The exchange also stated that it is now working with another crypto exchanges to anticipate the future losses and recovery of its assets. The company also underlined that it is keeping client subsidies independently from its own assets.

"The company believes that you can use Bithumb safely."- the statement says.

Bithumb Hacked, Operations Frozen

Bithumb, one of the largest crypto exchanges in South Korea has suspended all transactions of assets after reporting a cyber attack on June 20. As a result of the attack, $31 million (35 billion won) in cryptocurrencies was stolen from the platform. Bithumb did not specify how much exactly was stolen while the remaining assets of the exchange were moved to a cold wallet.

Earlier today, news from various sources began to report that South Korea is set to toughen its control over the crypto-market amid the hacking of the Bithumb exchange. The government intends to implement the regulatory framework for the industry as soon as possible.

By Nadya Astam

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