The cryptocurrency market is bleeding yet again following the Bithumb exchange hack which has seen at least $31.6 million worth of digital currencies lost to malicious attackers.

Based in South Korea, Bithumb is currently ranked as the world’s sixth largest crypto exchange by trading volume according to Coinmarketcap.

Full information concerning the Bithumb exchange hack is yet to be revealed, but some details of the breach have come to light.

 

Details of the Hack

According to a report from CoinDesk Korea, it is alleged that the malicious actors targeted XRP, the native token of Ripple’s XRP Ledger.

Moreover, even though it is still not clear at what precise time the breach took place, Bithumb suspended all deposits at 00:53 UTC. However, it seems that the team had noted security issues a few days prior.

On June 16th, the site carried out a security enhancement checkup, explaining:

“Recently, the number of unauthorized access attempts has increased. As such, an urgent server checkup was conducted to strengthen the security of all system.”

Around the same time, the exchange began to transfer users’ digital assets to cold storage facilities (offline).

Following the incident which Bithumb officially reported on Wednesday morning, the exchange has promised to compensate all lost assets in case recovery attempts fail.

In the meantime, it has halted all withdrawals and deposits and advised its customers to cease making deposits until further notice.

After having enjoyed a bullish trend for the past couple of days, the crypto market is back in the red after the Bithumb exchange hack, with a majority of the top cryptocurrencies showing losses over the past 24 hours.

Furthermore, the total market capitalization of all crypto assets has also dropped to $289 billion as at press time, down from Tuesday’s $294 billion as shown on Coinmarketcap.

Beryl is a passionate writer who is fascinated by blockchain technology. She has a Bachelor’s degree in Linguistics and Communication. When she’s not busy catching up on the latest crypto trends you’ll find her in the kitchen trying out a new dinner recipe. Contact her at [email protected]