Korean exchange Bithumb halts transactions after hack/theft

The team of Korean bitcoin and cryptocurrency exchange Bithumb, unfortunately, notified today of a theft which occurred on its exchange, valued at 35 billion won (35,000,000,000 KRW). Bithumb confirmed that all assets of users have now been moved to a secure cold wallet.

The loss which transpired will be compensated from Bithumb’s own reserves, and they reported that all of its assets remain securely saved in a cold wallet. Due to the implementation of security checks, Korean won deposit and withdrawal services will be temporarily halted, it will remain so until the security audit is completed.

Some cryptocurrency CEOs addressed the latest hack saying:

“These hacks are becoming more frequent as the incentives for hackers remain enticing. Companies need to make a dedicated and continuous effort, through penetration testing and smart contract auditing, for example, to provide the security necessary to protect the assets of their investors and users.”
– Yo Kwon, Hosho

“The Bithumb hack serves as yet another reminder that implementing crypto industry-friendly regulatory frameworks are of critical importance to the prolonged success of the industry. Without them in place, there is no way to ensure that security measures throughout the crypto landscape are held to a uniform standard. Once regulators define the rules of the road and security protocols for digital asset exchanges, these exchanges will mature and strengthen in turn.”
– Eiland Glover, Kowala

“Large institutional investors gravitate to platforms with a track record of operational excellence, support, and business lines they are familiar with. Meanwhile, the large hacks are motivating some savvy institutional investors to work with non-custodial trading venues (like Radar Relay) so they don’t have to face the operational risks of a centralized exchange.”
– Alan Curtis, Radar Relay

UPDATE:

As of Friday, June 22nd, the Bithumb team has decided to resume KRW withdrawal service. Bithumb remains in a collective investigation with the National Police Agency of Korea regarding the hack/theft.