Published: Sat, June 23, 2018
Money | By Arnold Ball

Bitcoin Recovers Above $6,700 Following Bithumb Attack

Bitcoin Recovers Above $6,700 Following Bithumb Attack

In April of a year ago, Youbit, formerly called Yapizon, lost bitcoins worth 5.5 billion won and filed for bankruptcy after it was hacked for the second time in less than eight months.

The notoriously secretive company is estimated to have around 100,000 traders using the platform at any given minute, and accounts for around 80% of South Korea's ether-based exchanges. However, we will make every effort to reopen the service as soon as possible, with the ultimate goal of protecting your assets. Senior IEEE Member and Professor of Cybersecurity at Ulster University, Dr Kevin Curran, says that consumers are unlikely to have stolen cryptocurrency returned to them should say bye to stolen Bitcoin. The company said it would compensate customers for all lost assets.

In an update posted on June 21, the Bithumb said it was beginning "recovery" processes and that the total losses from the recent hack could ultimately decrease.

Following the attack, Bithumb has stored all assets in "safe cold wallets", according to Reuters.

South Korean policymakers are debating comprehensive regulations covering cryptocurrencies, with proposals ranging from shutting down local exchanges to allowing them to operate under increased supervision.

No sign of North Korea dismantling nuclear weapons, Mattis admits
The since-demolished Punggye-ri Nuclear Test Site is indicated as the "nuclear test facility" in the country's northeast. The official described it is as a major center that has been used for testing engines for long-distance missiles.

While news of the latest theft has weighed on sentiment, the reaction has been relatively subdued, said Ryan Rabaglia, head trader at cryptocurrency dealing firm Octagon Strategy Ltd in Hong Kong.

After deleting the tweet, the exchange just sent out a tweet saying they've suspended deposit and withdrawal services to enhance the security, and no other explanation.

Bithumb is one of the largest exchanges in Asia, with a daily trading volume of over $330 million, according to Coinmarketcap. The exchange has given all users a notice with regard to the suspension of all activities involving deposits and withdrawals.

The price of Bitcoin had a sharp fall from $6,761 to $6,611 immediately after the announcement and Ethereum fell from $537 to $521 at the same time. Bithumb has annual profits of around $300 million, so the Bithumb hack shouldn't threaten their long-term survival.

The Korean government on June 21 launched a probe into the latest hacking attack on Bithumb, the country's largest cryptocurrency.

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