Bithumb Hack: Exchange Confirms It Will Repay Affected Customers In Full

Bithumb cryptocurrency exchange says it will repay all customers who lost money in the recent cyberattack that affected the platform. The exchange, which is the biggest in South Korea, suffered a high-profile hack on Wednesday in which it lost 35 billion Won (about $31.4 million USD). The exchange assured affected customers that it will reimburse them in full.

Bithumb Users will not suffer damages

In the update released on Thursday, Bithumb declared that “no damages” would come on customers following the attack. The post explained that the exchange’s asset, which was separate from customer assets would be bear the burden of the loss.  “We remind you once again that there is no damage to you,” the post reiterated.

According to the update, the company has about 515,800,000 Won (approx. $450 million) from which it can cover the losses without affecting customers. It is expected to release its financial report for the first half of 2018 in July.

Amount lost in the hack could decrease

Also, in the June 21 update, the exchange disclosed that it has started the process of recovering the stolen funds. “Bithumb is reducing the amount of losses through its ongoing disaster recovery. Future figures are expected to be lower,” the post read. It said it was working with Korea Internet & Security Agency (KISA) to recover the part of the lost funds, originally announced as 35 billion Won. KISA would assist Bithumb to map out strategies to prevent attacks like this in the future.

Increase in rate of Cryptocurrency Hacks

The spate of cryptocurrency attacks has increased particularly in South Korea and Asia in general. This map of the biggest cryptocurrency attacks in the history shows more attacks have happened since 2017. Coinrail, a South Korean lost cryptocurrency worth $ 40 million to a cyberattack earlier this month. The biggest attack this year still remains the notorious Coincheck heist in which $530 million worth of NEM coins were stolen. This led to sweeping changes and tighter regulations in Japan where the exchange is based. Coincheck was acquired by Monex soon after they resumed operations and started compensating victims.

Bithumb plans to resume withdrawals which were stopped immediately the attack was discovered. It could further compensate customers for the delay.



Solomon Sunny is the market reporter for Smartereum, one of the global leaders in Ethereum, blockchain and currency news. He produces technical price updates on digital currencies and writes recent developments about blockchain.


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