Third Hack In This Year: What is the Origin for the South Korea’s Largest Exchange Failures?
June 21, 2018
The South Korea’s largest crypto exchange Bithumb that used to be the most reliable digital asset trade platform over the last years along with UPbit, Coinone and Korbit has been hacked for the third time in 12 months.
Hackers can hack any crypto exchange
On June 20 Bithumb was hijacked for $30 million. Only small share of Bithumb’s funds stored at its hot wallet was stolen and quick response by the Bithumb team allowed to avoid greater disaster.
Local investors say, Bithumb was aware of the hacker attack since June 16 so its security team and developers tried to prevent it. During the last four days there were several hack attempts Bithumb failed to handle, so it transferred coins from the hot wallet to a cold one as last resort.
Local security experts have told the Chosun publication that hackers can easily hack any local crypto exchange if they get enough resource for this.
Over many months the experts encouraged local investors to address to the major crypto trading exchanges to make sure they won’t fall victims of hacking and lose their funds.
However, due to the recent hack of Bithumb investors lost confidence in local platforms primarily because Bithumb hack occurred just several weeks after a $40-million hacker attack at CoinRail was revealed.
Not all crypto exchanges can be hacked
While most of the experts in South Korea believe, all local exchanges are hackable, there quite many crypto platforms functioning without facing any of such incidents.
Coinbase (US), Binance (Malta), Gemini (US), UPBit (South Korea), Korbit (South Korea), Huobi (Hong Kong), Kraken (US), Bittrex (US) и BitMEX (Republic of Seychelles) are the woldr leaders among platforms for trading digital assets and none of them has been hacked.
One of the distinctive features for all of them is that they spend significant share of their resources and capital for customer security and each one is proud of its unchallenged reputation.
Binance CEO Changpeng Zhao and Coinbase CEO Brian Armstrong have stressed earlier, they focus on providing security for customer funds.
Fred Wilson, a well-known venture capitalist and one of the first investors to Coinbase, said, Coinbase is the world paragon of security and trust.
Companies like Coinbase and bitFlyer began hiring talented ones from the traditional financial sector who specialize on the most challenging finance matters like security, infrastructure and efficiency.
Bithum, just like Coincheck, failed to find skillful experts in finance and security to establish powerful executives which resulted in the three hacker attacks in 12 months and billions of stolen won.