20 Million XRP, $13 Million In EOS Stolen By Hackers From Cryptocurrency Exchange Bithumb

South Korean Cryptocurrency Exchange Bithumb

As a digital asset investor who trades cryptocurrencies on exchanges, one of your biggest fears is losing your precious tokens to hackers. For awhile now, the XRP news has been positive irrespective if the XRP security status and the XRP SEC saga. EOS news has also been positive since the beginning of the year. The same cannot be said about one the largest cryptocurrency exchange in South Korea, Bithumb. The exchange was recently backed and attackers made away with a significant amount in EOS and XRP. This isn’t the first time Bithumb is being hacked.

XRP News Today: Bithumb Hacked Again – XRP and EOS Stolen

Per the report on CCN, this is the second time the exchange is being hacked within less than a year. Also, the attackers took 3 million worth of EOS and 20 million in XRP making the total $13 million. Following the attack, the movement of the XRP and EOS tokens was tracked and posted online by a cryptocurrency enthusiast. Initially, everyone thought the attack was on Bithumb’s cold wallet. Fortunately, it wasn’t the cold wallet that was attacked. The Twitter user said;

“And this is the second time Bithumb saw a MAJOR hack, last time it’s hacked with a loss over $30m. Lol and after the first hack it was STILL able to get the fiat license from Korea and WTF??”

The EOS that was stolen was moved through ChangeNow. ChangeNow is a non-custodial exchange that doesn’t require KYC verification. At the current exchange rates, the XRP that was stolen amounts to about $6 million.

XRP News – Bithumb Speaks After The Hack – EOS News

Following the circulation of reports, the exchange issued a statement about the incident and said that it is currently moving all the remaining funds in its hot wallet to a cold wallet. As this happens, the criminals are being tracked moving the funds from one exchange to another as they try to cash out quickly. While everyone can see the substantial funds being moved, it’s difficult to trace the attacker to a given location.

EOS Price Today – EOS / USD

NamePrice
eos
EOS
$2.56

The cryptocurrency exchange also apologized for the incident stating that the hit was most likely an inside job. The official Bithumb handle posted;

“We deeply apologize to our members for delaying the cryptocurrency deposit and withdrawal service, we would like to inform you of the circumstances of the grounds and confirm that your assets are safe.”

The official Bithumb handle shared a post from the company’s official website. This blog confirmed that the heist was organized by people working at the exchange. Part of the blog is as follows;

“As a result of the internal inspection, it is judged that the incident is an ‘accident involving insiders’. Based on the facts, we are conducting intensive investigations with KISA, Cyber Police Agency and security companies.”

Bithumb is confident that the attackers will be tracked and the stolen funds will be recovered as soon as possible. The exchange said that it has already started investigating the issue and has implemented safety measures. It stated;

“We constantly monitor and block external hacking. However, it was our fault that we only focused on defense of outside attack and lack of verification of internal staff.”

What do you think? Will the hackers be traced and the funds recovered? Shared your thoughts in the comment section.

Max writes about blockchain projects and regulation with a special focus on United States and China. He joined Smarterum after years of writing for various media outlets.

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