The worlds 6th largest South Korean crypto exchange Bithumb just got hacked and it is confirmed that they have lost $31.4 million. The company has already announced that they will repay to all of its customers. They have launched a recovery process and mentioned that the total losses could decrease. “Bithumb is reducing the amount of losses through its ongoing disaster recovery. Future figures are expected to be lower” stated the officials.
The funny thing in this unfortunate event is that Bithumb had just agreed to pay $28 million to authorities as backdated taxes, and two weeks later they get hacked for a similar amount. This fact has evoked a lot of suspicion among the investors.
Some people refer to this as the reason of BTC (Bitcoin) price plunge, but Charlie Lee, the founder of LTC (LiteCoin) said that this hack “doesn’t really change the fundamentals of Bitcoin.”
The price drop is a typical market reaction to the news “it happens all the time” he added.
The best comparison for this situation was – if someone robs a bank, that does not change the price of gold.
This is not the biggest nor the smallest hack in crypto exchange hack history, but still it caused a lot of inconvenience to investors, traders and the owners.
South Korea will continue to modify their legislative environment and they hope to bring a ban on anonymous trading and some strict taxation demands on cryptocurrencies.
Photo by Wikipedia.