Cryptocurrency exchanges continue to face security issues as yet another hack on an exchange has resulted in millions of dollars worth of cryptocurrency being stolen. Merely weeks after South Korean exchange Coinrail lost $40 million in a hack, another South Korean exchange Bithumb has been hacked as well, losing $30 million worth of cryptocurrency in the process.
Bithumb initially confirmed through Twitter that the hack resulted in 35 billion won of tokens, worth around $31 million, being stolen. It didn’t provide the specifics of the attack but did say that it will cover losses for users.
All deposits on Bithumb have been frozen temporarily and trading has been suspended as well. The exchange needs some time to change its wallet system after which it will resume trading. This certainly won’t be the last attack on a crypto exchange that we hear about. Some expect these attacks to pick up going forward.
These hackers teach those who dabble in cryptocurrency a valuable lesson. Regardless of whatever token they buy, they should always store them in their private wallet. Storing tokens on an exchange is risky business as there’s always the possibility of a hacker stealing them.
Bithumb is a well established exchange and can refund $30 million to customers but some exchanges aren’t and they can’t cover users when they’re hacked so that lesson is something that crypto fans should always keep in mind.