Cryptocurency

What the Korea’s Crypto Scene Is Saying about Exchange hacks

July 4, 2018
The Main Bloq

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What the Korea’s Crypto Scene Is Saying about Exchange hacks

The Korean cryptocurrency community speaks out about the recent exchange hacks

The past two weeks have seen two South Korean exchanges get attacked and robbed, sparking commentary and critique among the country’s local cryptocurrency community.

It began with the Coinrail hack on June 9. At the time, the popular South Korean cryptocurrency exchange tentatively announced a “cyber intrusion” that saw the loss of $40 million worth of cryptocurrencies.

The exact number and amount of tokens taken from the exchange have yet to be confirmed by the company itself, though a third-party firm assisting Coinrail gave a few estimates in a blog post the following day.

If that wasn’t enough, on June 20, Bithumb – South Korea’s largest by trade volume – also announced a major security breach in which $31 million was reported to be lost. In a post published on their official website the same day, Bithumb reassured customers that their assets were now securely stored in offline “cold” wallets unreachable to hackers and the stolen funds would be fully reimbursed.

Combine this environment with a recent bearish market trend taking the price of bitcoin down in a way not seen since 2014 and you get the kind of social media uproar that questions just about everything.

As one Korean cryptocurrency skeptic tweeted:

Along the same lines, @marco20bil mocked a past Coinrail advertisement boasting its security by uploading a picture of the ad and tweeting at the company:

“Anyone would look at this and see it as an insider act, no? Please catch the culprit and restore the platform back to the original state as soon as possible…You said there is no vulnerability of being hacking in an advertisement. Are you joking me right now?”

Digging Deep

For most, it’s not a matter of tech security – that’s a given for those that care – but rather about the people who operate the exchanges behind the scenes.

As @leejongsul78 puts it:

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