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.

Source:

https://twitter.com/DoveyWan/status/1111839155380801536
https://cafe.bithumb.com/view/board-contents/1640037
https://twitter.com/BithumbOfficial/status/1111877947592310785

Photo by Soumil Kumar from Pexels

Cryptopia Hacked! Significant Losses!

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Today, January 15th, Cryptopia, a New Zealand altcoin exchange, came out with an announcement that yesterday January 14th, they experienced a security breach. This breach resulted in significant losses they claim. They haven’t yet specified how much has the exchange lost. 

Website closed

Cryptopia home page

Since they noticed this unusual activity they put the website in “maintenance mode”. They noted that they will keep it that way, with trading suspended, until they resolve the issue. Also, the staff notified all the appropriate government instances such as NZ Police and high tech crimes unit.

The Cryptopia Exchange

Cryptopia is known as the altcoin paradise back in the day, but since Binance now is the undefeated leader, and legally a better choice, a lot of traders have moved away from the altcoin exchange to Binance. When looking at coinmarketcap or coingecko, of course, the last 24h volume is 0, because the exchange is down at the moment. However, Cryptopia has lots and lots of markets, in which the expected volume is close to zero. Coinmarketcap says that Cryptopia has around 836 markets, but the last 300 or so are with no volume.

Markets within Cryptopia. Source: coinmarketcap.com

WhalePanda on Twitter pointed out that this is rather weird that this is happening during a bear market. Cryptopia has long lost its altcoin exchange title, and now is basically trying to stay alive. There are some rumors flying around, saying that the theft could be around $2,5 million, but when looking at their recent market volumes, those numbers just do not line up. Only if they had a cold storage where they held all the investors’ funds, which doesn’t seem likely.

Also, this is the first hack of 2019

Source:

https://goo.gl/U2XcDh
https://coinmarketcap.com/exchanges/cryptopia/

Photo taken from Pexels.com