South Korea’s Bithumb Exchange Suffers Attack

Crime, Investing, News | July 5, 2017 By:

South Korean bitcoin exchange Bithumb may have been hacked, resulting in billions of won lost and customer information compromised. The exchange is the world’s fourth-largest.

The South Korean watchdog Internet and Security Agency is investigating after some customers said they lost money in the attack. In a statement, Bithumb said to cryptocurrency news site BraveNewCoin that an employee computer was compromised, rather than its core servers.

“The employee PC, not the head office server, was hacked. Personal information such as mobile phone and email address of some users were leaked. However, some customers were found to have been stolen from because of the disposable password used in electronic financial transactions.”

The company did not provide specifics on potential funds lost, but several reports claim “billions” may be missing. One billion won is about $870,000 USD.

The breach allegedly occurred in February, but Bithumb only discovered a problem on June 29.

A notice posted to the company’s site said the leaked data did not contain exchange passwords. But reports claim customers have received scam calls and texts asking for account passcodes.

Bithumb has initially promised to cover losses of up to 100,000 won per customer, and may provide more to individuals.