Published: Thu, June 21, 2018
Business | By Kate Woods

Crypto Exchange Bithumb Halts Withdrawals Amid $31 Million Hack

Crypto Exchange Bithumb Halts Withdrawals Amid $31 Million Hack

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

On the Luxembourg-based Bitstamp, bitcoin was down 1.8 percent at $6,612.92 by 0351 GMT, extending losses as a series of intrusions on cryptocurrency exchanges in recent weeks sparked concerns over security.

"Due to the increasing safety issues, we are changing our wallet system", Bithumb said on Twitter. Whether this was somehow linked to the hack is unknown.

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It did not say which types of coins were lost.

One of South Korea's largest cryptocurrency exchanges, Bithumb, is the latest cryptocurrency platform to be comprised by hackers.

For now, Bithumb is moving the remainder of its funds into a cold wallet to avoid further risk. The platform is the sixth-largest in the world, with an average daily trading volume of nearly $400 million, according to CoinMarketCap.

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Last week, a South Korean venue called Coinrail said that some of the exchange's digital coins appeared to have been stolen by hackers, though it did not disclose how much. This time, it was Coinrail, a relatively smaller exchange service.

As mentioned earlier, Bithumb was the second cryptocurrency exchange to be hacked within this month.

However, the consensus among most experts is that the recent investigation by the US government on suspected price manipulation activities in the market as well as the expiration of Cboe Bitcoin futures contracts was the likely cause of price reduction. But it underscored the potential vulnerabilities for web-based trading and sent ripples across many cryptocurrency networks.

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Bitcoin price has broken above the resistance at $6,700 and is now testing resistance at $6,750. Keep the conversation going in the comment section below.

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