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Crypto Exchange Bithumb Allegedly Hacked of $19 Million in EOS, XRP

Cryptocurrency exchange Bithumb posted on its official Twitter that its cryptocurrency withdrawals and deposits have temporarily been paused on March 30. The exchange detected some abnormal withdrawals through its monitoring system recently.

According to reports the exchange has “secured all the cryptocurrency from the detection time with a cold wallet and checked them by blocking deposit and withdrawal service.”

Bithumb’s EOS hot wallet started sending EOS to the hacker’s address until the company realized the attack was ongoing. Report suggests that the attackers were insiders. In its recently updated blog post, Bithumb highlights that it was the exchange’s fault that it ensured protection from the outsiders but did not protect it from the insider staffs. Following the hack the exchange is developing its workforce verification system to protect the network and ensure high security.

Reportedly over 3 million EOS (about $12.5 million) have been transferred from the hot wallet. After detecting the continuing attack the exchange started to transfer the funds to the cold storage wallet. The company claims that all the funds that have been hacked were the exchange’s fund and the users’ funds are in the cold wallet.

In addition, report suggests that over 20 million ripple [XRP] [equivalent to about $6.2 million] have been stolen.

This is not the first time the exchange is encountering a hack. In less than a year the exchange has faced two attacks. Reportedly the exchange recovered $14 million of the stolen funds and said that it believes it will recover the losses like the previous time. According to the reports, Bithumb is investigating with the help of the Korean internet & Security Agency, cyber police agency, and other cybersecurity companies.

The company states,

“We will do our best to resume deposit and withdrawal as soon as possible to secure the service’s stability,” the company further added.

Some twitter users’ opinionates that a portion of the funds is distributed to exchanges and some portion of the funds were moved to other addresses.

Recently data analyst at Elementus, blockchain infrastructure company have revealed information of the transactions from crypto exchange CoinBene that it consider to be suspect, beginning with $105 million in crypto being moved out from exchange’s hot wallet.