Bithumb cryptocurrency exchange hacked; $20 million worth EOS and Ripple cryptocurrencies stolen

• An internal inspection revealed that the incident is an ‘accident involving insiders’.
• Upon detecting the abnormal transaction, Bithumb blocked any deposit or withdrawal requests and secured all cryptocurrency with a cold wallet.

What is the issue - Bithumb cryptocurrency exchange platform suffered a cyberattack on March 29, 2019.

The cryptocurrency exchange stated in a security notification that it detected an abnormal cryptocurrency withdrawal on March 29, 2019, via its abnormal trading monitoring system.

Why it matters - Attackers have stolen 3 million EOS worth $13.4 million and 20 million Ripple coins (XRP) worth $6 million.

Worth noting

• Bithumb disclosed that all the cryptocurrencies stolen were from the company’s wallet and members assets are secure in the cold wallet.
• An internal inspection revealed that the incident is an ‘accident involving insiders’.

What immediate actions were taken?

• Upon detecting the abnormal transaction, Bithumb blocked any deposit or withdrawal requests and secured all cryptocurrency with a cold wallet.
• The company is working closely with KISA, Cyber Police Agency and security companies to conduct investigations on the incident.
• It is also working with big exchanges in order to recover the stolen cryptocurrencies.
• The cryptocurrency exchange is developing an internal workforce verification system to avoid such an incident from happening in the future.
• It is working in order to resume deposit and withdrawal as soon as possible.

“Bithumb exchange is certified ISMS and applied to multi-signature withdrawal scheme. 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,” Bithumb said.