Korea Roundup: Mongolian Government Visits Bithumb, New BTM, Hardware Wallet

Korea Roundup: Mongolian Government Visits Bithumb, New BTM, Hardware Wallet

In South Korea, Bithumb was visited by officials of the Mongolian government. Upbit is offering free training leading up to its developer conference. A public company has unveiled a hardware wallet as it enters the crypto space. Meanwhile, hacked crypto exchange Coinrail has launched an international service for non-Korean customers, and a US bitcoin ATM operator plans to enter the Korean market.

Also read: Yahoo! Japan Confirms Entrance Into the Crypto Space

Mongolian Government Officials Visit Bithumb

Korea Roundup: Mongolian Government Visits Bithumb, New BTM, Hardware WalletSenior officials of the Mongolian government visited Bithumb’s headquarters on August 16, local media reported. They were trying to determine the feasibility of using blockchain and cryptocurrency in solar energy businesses in Mongolia. The Korea Economic Daily elaborated:

What they have focused on is the possibility of virtual currency remittance and payment functions and blockchain technology. Mongolia is seeking to utilize blockchains and virtual currency to activate new energy projects such as solar power generation at the government level.

“With the visit of high-ranking officials of the government, it is possible that Bithumb will pursue a business alliance with the Mongolian government or establish a local corporation,” the publication noted.

Ksign Launching Hardware Wallet

Korea Roundup: Mongolian Government Visits Bithumb, New BTM, Hardware Wallet
Ksine’s CEO, Choi Seung-rak, introducing Touch x Wallet.

Kosdaq-listed company Ksine Inc. has commenced its cryptocurrency business with the launch of a hardware wallet called Touch x Wallet, the company announced on August 16.

Touch x Wallet uses locally developed fingerprint authentication technology and has a built-in battery. It can store up to 10 cryptocurrencies – including bitcoin, ether, and ripple – which the company plans to expand to about 50 by the second half of next year, Cctvnews reported. The wallet also has high-resolution electronic paper (e-paper) to display QR codes of addresses and allows users to check their balances.

Korea Roundup: Mongolian Government Visits Bithumb, New BTM, Hardware Wallet

Upbit’s Crypto Training and Developer Conference

Dunamu Inc, the operator of South Korea’s major crypto exchange Upbit, announced on August 16 that it is holding a free crypto and blockchain training for the public on September 12. This is a pre-program leading to Upbit Developer Conference which will take place on September 13 and 14 at the Jeju Creative Economy and Innovation Center.

Korea Roundup: Mongolian Government Visits Bithumb, New BTM, Hardware WalletThe class consists of two parts. The first focuses on the origin and history of blockchain and cryptocurrency. The second focuses on the theory and practice of blockchain including the basic understanding of Ethereum and Lambda chain, solidity and Dapp development, and smart contracts.

Recently, the governor of Jeju Island requested the central government to designate the island a special zone for blockchains and cryptocurrency.

Coinrail Launches International Service

Coinrail, which was hacked on June 10 and resumed services on July 15, announced last week that it has officially launched the Coinrail international service for non-Korean users. Foreigners can now access the exchange’s crypto-to-crypto markets. The service is available in English.

Korea Roundup: Mongolian Government Visits Bithumb, New BTM, Hardware Wallet

Coinme Rolling out Bitcoin ATMs in Korea

Korea Roundup: Mongolian Government Visits Bithumb, New BTM, Hardware WalletU.S. bitcoin ATM (BTM) operator Coinme revealed on August 16 that it is “seeking to roll out its service in Korea before the year-end,” the Investor reported.

Currently, the company’s ATMs are in 67 locations across the U.S., the new outlet noted, adding that “Coinme said it is eying Asia as the next spot for expansion, specifically focusing on Korea and other countries in the region, including Hong Kong and Singapore.”

CEO Neil Bergquist was quoted saying:

We have seen really promising interest in Coinme from Korea…There’s a large and sophisticated cryptocurrency community which understands the potential of a token tied to real world applications.

“The Coinme ecosystem also seeks to offer massively reduced transaction costs, so we see real synergies with the Korean market,” he added.

What do you think of all the crypto activities going on in South Korea? Let us know in the comments section below.


Images courtesy of Shutterstock, Zdnet, Bithumb, Upbit, Coinrail, Ksine, and Coinme.


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Korean Government: 11 out of 21 Crypto Exchanges Complete Security Measures

Korean Government: 11 out of 21 Crypto Exchanges Complete Security Measures

The South Korean government has announced the outcome of its inspection of 21 cryptocurrency exchanges. While a number of exchanges have completed implementing both short-term and wallet management measures, many security vulnerabilities remain at most exchanges.

Also read: Yahoo! Japan Confirms Entrance Into the Crypto Space

21 Exchanges Inspected

Korean Government: 11 out of 21 Crypto Exchanges Complete Security MeasuresSouth Korea’s government has announced the result of its mid-term review of 21 cryptocurrency exchanges. The inspection was conducted in June and July by the Korea Internet and Security Agency (KISA) and the Korean Ministry of Science and Technology.

KISA security experts visited each exchange to check on the 85 items identified during its previous crypto exchange inspection, conducted between January and March. They focused on 17 items which needed immediate implementation; six were short-term measures and 11 concerned crypto wallet management.

Korean Government: 11 out of 21 Crypto Exchanges Complete Security Measures“Intermediate checks were carried out in such a way as to confirm whether improvements had been made, focusing on the 17 security items recommended for quick action,” the government explained. These items include dedicated security and management staff, a password management system, crypto deposit and withdrawal controls, and a system to monitor wallets for abnormalities.

The agencies revealed that 11 out of 21 exchanges have completed the short-term measures. In addition, eight of them have also improved their wallet management systems. The eight are Upbit, Bithumb, Korbit, Coinnest, Coinlink, Coinone, Coinplug, and Huobi Korea, local media detailed. The government reiterated:

In the management of virtual currency wallets, most of the vulnerabilities in the business have not yet been improved.

Furthermore, twelve companies have been found to have insufficient security procedures to prevent data leakage and loss of funds from their cold wallets. Ten companies have inadequate systems to monitor hot wallets for suspicious activities. In addition, at least ten businesses lack wallet backup and recovery measures.

Further Inspections Planned

The final check on the implementation of recommended measures will be carried out next month, the agencies noted, adding that any new crypto exchanges will also be inspected.

Korean Government: 11 out of 21 Crypto Exchanges Complete Security Measures“Because of the weak security of virtual currency exchanges, we should be careful in investing,” Kim Jong-sam, a spokesperson for the Ministry of Information and Communication, commented. “We will continue to check virtual currency exchanges to improve security.”

Referencing the hack of Coinrail and Bithumb in June, KISA described that “the leakage of virtual currency due to the hacking of recent dealers has directly led to the damage of users,” adding that after checking 85 security items, “there are many dealers with low security.”

Emphasizing that they have been asking crypto exchanges to “improve security levels by completing the recommendations for improvement,” the agencies revealed:

We plan to support the improvement of the security level of the dealers through continuous inspection of the dealers.

What do you think of the Korean government’s review? Let us know in the comments section below.


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South Korean Crypto Exchange Bithumb Re-opens Deposits & Withdrawals

South Korean cryptocurrency exchange Bithumb will resume deposit and withdrawal services on Saturday at 11 am KST. The exchange had suspended all deposits and withdrawal services on its platform following the June hack on a hot wallet, which led to the loss of tokens valued at over $30 million. Hacked Crypto Exchange Bithumb Unfreezes Withdrawals … Continued

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Bank Freeze Forces Korean Crypto Exchange Bithumb to Disable New Accounts: Report

South Korean crypto exchange giant Bithumb has suspended the issuance of new KYC bank-linked virtual accounts after failure to renew and establish a contract with a bank, as mandated by new guidelines this year. Starting today, August 1, Bithumb – one of Korea’s ‘big four’ exchanges – is no longer issuing new virtual accounts to … Continued

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South Korea Plans to End Major Tax Benefits for Bitcoin Exchanges

South Korea Plans to End Major Tax Benefits for Bitcoin Exchanges

The South Korean government has announced a new set of tax law amendments. Under this proposal, bitcoin exchanges will no longer be eligible for income and corporate tax deductions currently enjoyed by small and medium-sized businesses. The regulators have also been considering imposing capital gains tax on the sale of cryptocurrencies.

Also read: Yahoo! Japan Confirms Entrance Into the Crypto Space

Stripping Away Tax Benefits

The South Korean government has announced its proposed Revised Tax Law 2018. In the official statement published Monday, the government wrote, “from next year, virtual currency handling businesses will be excluded from the industries eligible for the tax reduction for SMEs [small and medium-sized enterprises].”

South Korea Plans to End Major Tax Benefits for Bitcoin Exchanges
The South Korean government announcing 2018 tax amendments.

News1 explained that crypto exchanges “have been considered as venture companies or small and medium-sized businesses for tax purposes until now,” allowing them to benefit from considerable income tax deduction. Citing other favorable tax treatments such as depreciation of assets acquired during the first four years, the publication elaborated:

Under the current tax exemption rules, income tax and corporation tax are reduced by 50% to 100% for five years for business startups, SMEs and venture companies.

Crypto Exchanges to Pay Higher Taxes

South Korea Plans to End Major Tax Benefits for Bitcoin ExchangesAccording to the news outlet, the government has decided to exclude crypto exchanges from the list of entities eligible for SME tax deduction “because the cryptocurrency trading business lacks the effect of creating added value.” The revised tax law will be submitted to the National Assembly and, if passed, will go into effect next year.

Crypto exchanges are currently liable to pay corporation tax of up to 22%, Seoul Finance described, adding that “considering that virtual currency exchanges earned huge amounts of money in the last year and earlier this year, it is estimated that the amount of exemption would be considerably large.” The publication conveyed that under the current setup:

Bitsum exchange, which is estimated to have net profit of over 250 billion won [~US$223 million] last year, should pay 54.4 billion won [~$48.6 million] in corporate tax but it is expected to save 27.2 billion won [~$24.3 million] since it receives 50% reduction.

However, “taxation on the sale of cryptocurrency was not included in the amendment bill…based on the judgment that more research is needed,” the publication emphasized. “The government has been considering imposing capital gains tax virtual currency trading profits since early this year, but no specific taxation bill has come out.”

What do you think of the Korean government proposing to take away tax benefits for crypto exchanges? Let us know in the comments section below.


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Crypto Market Rebounds, Bithumb Drives Kimchi Premium Up 50%

Bithumb, formerly the biggest crypto exchange in South Korea, has driven the Kimchi Premium up 30 percent on major tokens, inflating the price of cryptocurrencies. Bithumb, the Bad Actor On June 20, as CCN reported, Bithumb was hacked for $40 million. The Financial Services Commission (FSC) and Korea Financial Intelligence Unit (KFIU) were involved in … Continued

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Binance Will Face Tough Competition in South Korea in New Market Expansion

Binance, the world’s largest cryptocurrency exchange, is planning an expansion into South Korea, the third biggest cryptocurrency market behind Japan and the US. South Korea’s Unique Market Structure In South Korea, two major digital asset trading platforms have had dominance over the crypto exchange market for several years. UPbit, an exchange created and developed by

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Most Complex dApp on Ethereum Already Has Millions of Dollars at Stake

Augur, which its co-founder Joey Krug previously described as the most complex decentralized application (dApp) on the Ethereum blockchain, has surpassed a million dollars at stake and demonstrated a rapid growth rate over the past few weeks. Future of Decentralized Betting In essence, Augur is a decentralized betting platform that exists on the Ethereum network.

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Korean Crypto Giant Bithumb Eyes Japan and Thailand for Expansion

South Korean exchange Bithumb has announced that it will open new offices in Japan and Thailand. According to local news outlet ZDNet, Bithumb is awaiting the approval of Japanese Financial Services Agency (FSA) and Thai Securities and Exchange Commission (SEC). Cryptocurrency Regulations in Japan & Thailand Bithumb explained that it chose Thailand because the e-commerce and fin-tech … Continued

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Major Korean Exchange Bithumb Expanding into Japan and Thailand

Major Korean Exchange Bithumb Expanding into Japan and Thailand

One of South Korea’s largest cryptocurrency exchanges, Bithumb, is expanding into Japan and Thailand. The exchange is working on obtaining regulatory approval from the financial regulators of both countries. The new locations are part of the exchange’s global expansion plan.

Also read: Yahoo! Japan Confirms Entrance Into the Crypto Space

Expanding into Thailand

Major Korean Exchange Bithumb Expanding into Japan and ThailandBithumb is currently working on obtaining regulatory approval from the Thai Securities and Exchange Commission (SEC), local media reported Friday. The exchange is the second largest in South Korea at the time of this writing, with a 24-hour trading volume of about $358 million, behind only the Kakao-backed Upbit with a $582 million trading volume during the same time period.

The exchange has already established a Thai subsidiary, Bithumb (Thailand) Company Limited, with registered capital of 3 million baht (~US$90,000). Zdnet quoted the company explaining the reason for its expansion into the Thai market:

Thailand is active in e-commerce and the fintech industry, and the government is showing great interest in digital currency as it promotes smart city business.

Thailand has recently finalized its regulatory framework for cryptocurrencies and initial coin offerings (ICOs). Bithumb has been building its Thai website, the publication added, noting that it plans to start service in Thailand at the end of October.

Major Korean Exchange Bithumb Expanding into Japan and Thailand
Bithumb Thailand’s website. Photo: Zdnet.

Expansion into Japan

Major Korean Exchange Bithumb Expanding into Japan and Thailand
Bithumb Japan’s website. Photo: Zdnet.

Japan legalized cryptocurrency as a means of payment in April of last year. All companies seeking to operate an exchange in the country must obtain approval from the country’s top financial regulator, the Financial Services Agency (FSA). However, with the hack of Coincheck in January, the FSA has been strengthening its oversight of crypto exchanges and imposing a stricter exchange approval process.

Nonetheless, Bithumb is seeking approval from the FSA with a plan to open an exchange in Japan in February next year, the news outlet conveyed. The exchange also revealed that “it plans to set up an exchange that supports the largest number of coins in Japan,” the publication noted.

Global Expansion Plan

Major Korean Exchange Bithumb Expanding into Japan and ThailandEarlier this year, Bithumb announced that it is looking for partners for its global expansion. The exchange says it will work closely with overseas partners to launch platforms that are faster and more efficient for traders worldwide.

Projects which Bithumb will collaborate with potential partners include “cash (deposit/remittance/debit) management processing, the operation of an exchange platform, [and] marketing & promotion and customer service,” the exchange detailed. According to the announcement:

Bithumb is preparing exchange platforms for countries under the global expansion plan and we are looking for great and potential partners (corporation, entity or group) worldwide…The exchange platforms under final development stages are USD / JYP / EUR / CNY / INR / GBP / AUD / CAD / PHP / RUB and [there] will be more soon when there are any service demands.

According to Money Today, Bithumb has also established a subsidiary in Singapore and Britain. “We are considering establishing overseas subsidiaries in various countries such as the U.S. and Europe, but the time has not yet been determined,” the exchange clarified.

In April, the third largest crypto exchange in South Korea, Coinone, announced its expansion into Indonesia.

What do you think of Bithumb expanding into Thailand and Japan? Let us know in the comments section below.


Images courtesy of Shutterstock, Bithumb, and Zdnet.


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Only 12 out of 23 Korean Crypto Exchanges Pass Probe – Inspector Under Fire

Only 12 out of 23 Korean Crypto Exchanges Pass Probe – Inspector Under Fire

The self-regulatory inspection of South Korean cryptocurrency exchanges is complete. Fourteen out of 23 exchanges agreed to be inspected. Twelve met the self-regulatory standards despite security flaws, raising questions of how effective the inspection is.

Also read: Yahoo! Japan Confirms Entrance Into the Crypto Space

12 Exchanges Pass Security Checks

Only 12 out of 23 Korean Crypto Exchanges Pass Probe – Inspector Under FireThe Korea Blockchain Association (KBA) held a press conference Wednesday to announce the results of its inspection of cryptocurrency exchanges operating in the country. The Association “gave a nod to the cybersecurity standards of 12 cryptocurrency exchanges,” the Korea Herald reported.

The KBA has been heavily promoting self-regulation since its establishment last year. Out of 23 members that are crypto exchanges, 14 of them voluntarily agreed to be inspected. According to the news outlet:

Exchanges that gained self-regulatory affirmation were 12 out of 14: Dexko, Hanbitco, Okcoin Korea, Huobi Korea, Bithumb, Upbit, Neoframe, Gopax, Cpdax, Coinzest, Korbit and Coinone. Operators of the other two — Sunny7 and Komid — withdrew from the KBA-led inspection.

The inspection was conducted “through interviews by third-party experts authorized by KBA in June and July,” the publication noted, emphasizing that a “hacking simulation on the exchanges did not take place.”

Nonetheless, the association said the 12 exchanges met “general standards” such as “minimum total assets, adoption of a cold wallet, anti-money laundering requirements and dozens more.” They also met “the criteria for cybersecurity standards, which the association referred to as minimum requirements.”

Association Criticized for Poor Screening

Following the KBA’s announcement, some industry participants pointed out major flaws in the inspection.

12 Korean Crypto Exchanges Pass Self-Regulatory Probe but Inspector Under FireThe association has come “under fire for poor screening of cryptocurrency exchanges,” the Korea Times wrote, emphasizing that “the KBA even extended its one-month inspection to two months to allow sufficient time for underprepared exchanges, inviting criticism for carrying out an inspection in name only.”

Furthermore, “It is pointed out that even though hacking incidents at virtual currency trading sites have occurred recently, all trading sites have passed the screening,” Money Today wrote, suggesting that the inspection was ineffective. Last month, Coinrail and Bithumb were hacked.

The news outlet quoted an industry source asserting, “it is doubtful that all of them have passed [the inspection],” noting that “the fact that the scores of the detailed evaluation items are not disclosed for each trading site is also a cause of doubt in the examination results.” The Korea Times elaborated:

The KBA did not disclose a detailed score or security rating of each cryptocurrency exchange, casting doubt about the fairness of the inspection. The KBA said the disclosure could trigger another cyberattack on domestic exchanges with weaker security firewalls.

The chairman of the association, Jeon Ha-jin, even “indirectly admitted the group’s inspection may have loopholes,” according to the news outlet.

12 Korean Crypto Exchanges Pass Self-Regulatory Probe but Inspector Under FireHe was quoted explaining, “This inspection does not guarantee the absolute safety of the 12 exchanges,” noting that “The result indicates the 12 exchanges satisfy the minimum requirement for their operations. It is like a driver’s license. It is hard to tell whether they are good drivers or not.”

The chairman also declined to elaborate on a “huge gap in the level of handling cybersecurity risks between the 12 exchanges,” the Korea Herald conveyed.

The announcement by KBA came just days after the Korean government revealed its analysis of hacking incidents in the country. The government has been criticized for not doing enough to prevent hacking damages since three of the 31 exchanges it inspected were hacked, causing damages of about 110 billion won (~US$98 million).

What do you think of this self-regulatory inspection and standards? Let us know in the comments section below.


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Korean Government Criticized for Crypto Exchange Hacks, Upbit Denies Hack Rumor

Korean Government Criticized for Crypto Exchange Hacks, Upbit Denies Hack Rumor

The South Korean government has been criticized for not doing enough to help prevent hacking at cryptocurrency exchanges. Data obtained by the regulators show that three crypto exchanges were hacked, with damage of almost $1 billion, after having gone through an inspection by the government. Meanwhile, one of the nation’s largest crypto exchanges, Upbit, has denied the rumor that it was also hacked.

Also read: Yahoo! Japan Confirms Entrance Into the Crypto Space

Crypto Hacking Incidents

The South Korean Ministry of Science and Technology, the Ministry of Information and Communication, the Korea Communications Commission (KCC), and the National Police Agency have submitted data on hacking incidents of cryptocurrency exchanges to the National Assembly, local media reported on Monday.

Korean Government Criticized for Crypto Exchange Hacks, Upbit Denies Hack Rumor
Min Kyung-wook.

Min Kyung-wook, a member of the National Assembly’s Science and Technology Information and Communications Commission, revealed that the data shows seven hacking incidents. They resulted in the loss of 128.8 billion won (~US$115 million) in cryptocurrencies, the Korea Daily reported.

The government has conducted a security check on 31 crypto exchanges, the news outlet detailed, adding that 10 of them were inspected between September and December last year while the other 21 from January to March this year.

The regulators advised the exchanges to take immediate action to improve a number of areas such as the “lack of information security system such as firewall, lack of system access control, [and] insufficient malicious code prevention.”

Government Criticized

Out of the total damage of 128.8 billion won, 110 billion won (~$98.5 million) in cryptocurrencies were stolen from three crypto exchanges. These three “were hacked even after receiving government security checks,” the publication noted. “The government has been criticized for not being able to take effective measures against the exchange security problem.”

Korean Government Criticized for Crypto Exchange Hacks, Upbit Denies Hack RumorThe first of the three is Youbit. The platform was inspected by the government on October 26 and 27 last year but was subsequently hacked less than two months later, on December 19. The security breach resulted in the loss of about 25.9 billion won (~$23.2 million).

Coinrail was inspected on February 8 and 9 and was hacked on June 10, with damage of about 53 billion won (~$47.5 million), the publication quoted the government’s findings.

One of the country’s largest crypto exchanges, Bithumb, was inspected twice by the government, on November 29 and 30 last year and again on February 22 and 23, the news outlet detailed. However, on June 19, it suffered a security breach and lost about 35 billion won (~$31.4 million). The exchange, however, lowered its loss estimate to about 19 billion won (~$17 million) days later.

Lawmaker Min criticized the government, pointing out:

The hacking incidents occurred even at the places where the government directly conducted security checks.

Citing that “the government has not yet made clear rules for cryptocurrencies,” Professor Lim Jong-in of Korea University’s Information Security Graduate School asserted that “as Bithumb and other exchanges act as financial institutions in reality, the government should set up a regulatory system based on this.” He believes that if the regulators let them remain as they are, “the damage will be exponential.”

Upbit Denies Hack Rumor

Korean Government Criticized for Crypto Exchange Hacks, Upbit Denies Hack RumorWith news of multiple security breaches at various crypto exchanges, all eyes are one of the nation’s leading crypto exchanges by volume, Upbit. There have been various rumors that the Kakao-backed exchange has been hacked even though Upbit has consistently denied them.

On July 8, the exchange issued a statement in response to one particular rumor which it said had surfaced “in many communities” on Sunday. Citing that the rumor is false, the exchange wrote:

Your assets held at Upbit are kept secure…The large amount of coins movement found through communities is part of [us] upgrading the wallet management system, and the work is done under the tightly managed security environment of Upbit…We hope that your investment will not be harmed due to false rumors.

What do you think of the Korean government being criticized for the hacks? Let us know in the comments section below.


Images courtesy of Shutterstock, Upbit, and Joongang Ilbo.


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South Korea is Officially Recognizing Crypto Exchanges as Regulated Banks

For the first time in history, the government of South Korea has officially recognized crypto exchanges regulated financial institutions and banks. Local publications in South Korea have reported that the financial authorities of South Korea have finalized their plans to categorize crypto exchanges as an industry called “Cryptocurrency Exchange and Brokerage” to enable trading platforms … Continued

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Bithumb Reveals 11 Cryptocurrencies Lost and Plan to Compensate Customers

Bithumb Reveals 11 Cryptocurrencies Lost and Plan to Compensate Customers

South Korean crypto exchange Bithumb has announced the 11 cryptocurrencies stolen in last week’s theft and the amount of each coin missing. A compensation plan has also been unveiled for the equivalent value of the lost coins in an undetermined cryptocurrency.

Also read: Yahoo! Japan Confirms Entrance Into the Crypto Space

Only Half As Much Crypto Missing

Bithumb Reveals 11 Cryptocurrencies Lost and Plan to Compensate CustomersBithumb officially announced Thursday the details of the cryptocurrency theft which it reported on June 20. Since then, the exchange has been cooperating with the authorities to investigate the cause of the theft.

Initially, the exchange estimated that the “damage caused by the cyber-attack was about 35 billion KWR [~US$31 million],” but that amount was revised to “about 19 billion KRW instead [~$17 million]” after undergoing a “continuous recovery process.” The exchange elaborated:

The main reason for the reduction of the damage is due to the ongoing participation, support and cooperation of cryptocurrency exchanges and cryptocurrencies foundations across the world. Also our quick response to the cyber-attack by removing cryptocurrencies from hot wallet to cold wallet effectively contributed to reducing the overall damage.

At the time of this writing, Bithumb is South Korea’s largest crypto exchange with a 24-hour trading volume of $136,432,719, followed by the Kakao-backed Upbit with $110,435,824 trading volume in the same time period, according to Coinmarketcap.

Which Coins Were Stolen?

Bithumb has provided a breakdown of the 11 cryptocurrencies that it claims were stolen. They are BCH, BTC, ELF, ETH, ETHOS, GNT, HSR, KNC, OMG, VEN, and XRP. The largest damage is in BTC, which had about 13.9 billion won (~$12,377,255) stolen. According to Bithumb, the total amount stolen is 18,945,911,857 KRW or $16,892,614.

Bithumb Reveals 11 Cryptocurrencies Lost and Plan to Compensate Customers

Compensation Plan

Bithumb has also revealed its plan to compensate all affected users. Reiterating that it takes full responsibility, the exchange announced that it is organizing “a compensation airdrop event.”

Bithumb Reveals 11 Cryptocurrencies Lost and Plan to Compensate CustomersMembers must apply for compensation from the theft to be eligible for the distribution.

For the inconvenience of keeping customers’ coins tied up, the exchange is offering interest between the time of application to the date they are fully compensated. “The annual interest rate of 10% will be prorated over the [compensation] period, hence the longer you hold, the higher compensation becomes,” Bithumb emphasized. “The amount of cryptocurrencies held will be calculated from 8:00 PM ~ 9:00 PM (UTC+9) each day starting from the date of application until the end of the [compensation] period.”

However, the eventual selection of which cryptocurrency customers will be reimbursed in has not yet been determined, Bithumb detailed, stating:

The equivalent value of cryptocurrencies will be given away in a form of an airdrop (the type of cryptocurrency is not decided yet).

Commission Fee-Free Coupons

In addition, Bithumb Reveals 11 Cryptocurrencies Lost and Plan to Compensate CustomersBithumb is offering commission fee-free trading coupons for all interested customers for the inconvenience caused to them, starting on June 28.

“Commission fee-free coupons will be available for purchase each day (the coupon is zero cost, useable for 1 day and it can be purchased once every day),” Bithumb detailed, adding that once it is purchased, it does not stack and can only be purchased when another coupon expires.

What do you think of Bithumb’s theft and plan to compensate customers? Let us know in the comments section below.


Images courtesy of Shutterstock and Bithumb.


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Bithumb Has Recovered Nearly Half of Funds Stolen in Last Week’s Hack

Cryptocurrency exchange Bithumb claims that it has recovered nearly half of the funds stolen in a recent high-profile hack at the South Korean trading platform. As CCN reported, hackers breached Bithumb’s online hot wallets on June 20, making off with approximately 35 billion KRW (~$31 billion) before the exchange operator was able to transfer its … Continued

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$14 million worth of BTC, ETH, BCH, and XRP Stolen from Bithumb Hack

Bithumb hack

Bithumb hack: Last week, the world’s 11th largest cryptocurrency exchange by its 24-hour trade volume, Bithumb, announced that it had been hacked. The initial reports suggested that close to 35 million Korean won ($31 million USD) had been taken from its platform. Several cryptocurrencies were stolen, including Bitcoin (BTC), Ethereum (ETH), Ripple (XRP), and Bitcoin Cash (BCH).

The original translated tweet read:

“[Urgent notice] to stop the front of the withdrawal service password please stop the money transfer. Today, about 35 billion in the morning, the size of the password was stolen. Your assets ...

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