$19 Million Bithumb Hack Depicts Major Problem With Cryptocurrency Exchanges

Bithumb, a cryptocurrency exchange platform which has its base in South Korea, suffered its latest crypto hack which is expected to have been an inside job. Criminal elements from the firm are suspected of hacking and stealing cryptocurrencies worth nearly $20 million USD. With most of the platforms importantly focusing on securing funds from external factors, such hacks prove that exchange platforms are at greater risk from their own work staff.

Multiple cryptocurrency monitors have posted transactions which have been under suspicion as they depict the movement of nearly 3 million EOS which is worth around $13 Million USD, from Bithumb’s wallet to an unknown location. Further, it was revealed that the hackers had stolen nearly 20 million XRP from Bithumb, which is almost worth $6 million USD. The hackers quickly divided the amount into several other exchanges in an attempt to hide the theft.

Bithumb hasn’t been the first platform to which has been a victim to attackers. Crypto asset exchange thefts have occurred quite many times within this industry. In the year 2018, Bithumb had lost around $31 million in another hacking case. Since the news of the hack has come out, there have been speculations that the attack has been carried out by the people working for Bithumb.

A short extract from a notice released by the firm on the 30th of March, reads,

“As a result of the inspection, it is judged that the incident is an accident involving insiders because the external intrusion path has not been revealed until now. Based on the facts, we are conducting intensive investigations with KISA, Cyber Police Agency, and security companies.”

This statement from Bithumb shows that there is a possibility of insiders being responsible for attacking the private key and stealing funds from the wallet. With exchanges spending huge amounts on securing themselves against external intrusions, internal factors have been taken seriously.

Another confusing aspect of the issues comes because of the delay by Bithumb in the announcement of the security breach. Moreover, there is evidence which suggests that Bithumb was aware of the attack nearly 24 hours before it announced its public statement. Now the question is whether the cryptocurrency platform from South Korea was attempting a cover-up or it was just as clueless like the others.

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