Bithumb, Leading Korean Exchange, Hacked Again?!

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Just recently, on March 30, 2019, Bithumb saw yet another cyber attack. It appears that the exchange is hacked and unofficial information says that around 3 million EOS are stolen.

Bithumb temporary pauses Withdrawals and Deposits

The exchange started communicating to its followers on Twitter, saying that they apologize to their users for delaying deposit and withdraw services. Also, they wanted to inform about the “circumstances” of the grounds and informed that users’ funds are safe.

However, it appears that the hacker transferred 3,1 million EOS out of their hot storage within 16 transactions, says the unofficial source.

The first transactions from the Hacker.

Moreover, it looks like not only EOS is the victim, the same unofficial source claims that more than 20 million XRP is on the line as well!

This is the Bithumb EOS account (g4ydomrxhege), which suffered the attack.

The remaining balance is transferred out of the wallet and into the Bithumb cold wallet (bithumbshiny).

The second major Bithumb hack

Bithumb has suffered from hackers almost exactly a year ago as well. Only that time the losses were much more significant. Bithumb reportedly lost around $31 million, but managed to recover $14 million during the investigation. Many tweeters say that this incident is almost ridiculous, and Bithumb hasn’t learned anything from the previous hacks.

Also, another thing which a lot of people note is that this time EOS won’t be able to help/freeze the transactions because now it is too late. The hacked disposed the stolen EOS via ChangeNow, a non-custodial cryptocurrency swap platform that does not require KYC from it’s customers.

Additionally, according to this issue, many people now have found out that Bithumb kept $15 million worth of cryptocurrency in a single wallet. Many seem to question this kind of action.

The entire timeline

A Twitter user @DoveyWan has collected the entire timeline on how the situation escalated.

(SGT time-zone)

  • On 3/29 at 9:40 AM – Hacker account ifguz3chmamg was created via accountcreat 
  • 3/29 9 to 11 PM– Bithumb wallet g4ydomrxhege has been transferred out 3,132,672 EOS to the hacker account, total 16 transactions
  • 3/29 post 11 PM – the hacker has been disposing stolen EOS via ChangeNow to downstream exchanges including Huobi, Kucoin, the distribution is still on-going 
  • 3/30 midnight, Bithumb started to transfer remaining balance of g4ydomrxhege/new deposit into its cold wallet bithumbshiny.

Also, the user has created a complex chart explaining the fund flow analysis.

We will update the article as the situation unfolds.


Photo by Soumil Kumar from Pexels

Bithumb sold!

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A leading South Korean exchange Bithumb, just sold the majority of their company shares to a new investor. The price for this deal has been rumored to be around $350 million. Interestingly enough, the investor is a medical organization based in Singapore, which specializes in plastic surgery, called BK Global Consortium, led by Dr. Kim Byung Gun who is a well-known cryptocurrency investor. BTC Korea Holdings up until now controlled 76% of the company’s shares, thus being the largest stakeholder of Bithumb, and after this deal, they have agreed to sell 50% plus 1 share for approximately $350 million. With this deal, Bithumb was valued at around $880 million.

The information on this deal is very fragmented, as some news write that BK Global Consortium had acquired only 38% of the shares, but when digging deeper, it turned out not to be true. Basically, Bithumb has sold their company to BK, and some are speculating, that this had been done due to a hack which happened earlier this year when Bithumb lost $30 million in cryptocurrencies, which they paid back to their customers. This hack created a huge setback for Bithumb and that could be one of the main reasons why Bithumb is changing owners.

The new owner – BK Global Consortium, with its chairman Dr. Kim Byung Gun, who is an early cryptocurrency investor, who previously had made an ICO consulting firm and an ICO platform in Singapore, is claimed to have huge plans for Bithumb.

First, there are rumors that he is planning to open a Bithumb DEX (Decentralized Exchange) later this month, which would create a competition for Binance, StellarX and Coinbase.

Secondly, BK Consortium is planning on creating a partnership with an e-marketplace based in Singapore, to “develop a blockchain e-commerce payment system that significantly reduces virtual currency price volatility and settlement fees.”

The current Bithumb owners BTC Korea Holdings probably saw the bright ideas of Kim and his connections around Singapore and figured that the Company would be better in his hands, as he has a wide range of experience in a lot of business fields. A representative of the consortium shared his thoughts on this: “Kim Byung Gun demonstrated his multinational management ability in the field of medical care, fintech, and blockchain in Singapore. He is the right person to pursue the systemization and globalization of the virtual currency exchange.”

There are some rumors that eventually Bithumb might release their own crypto token, to ease the use of the planned platform, but the details on this are still to come.


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