Bithumb thinks it may reduce hacking losses

The company is working with other crypto exchanges to recover stolen funds

Bithumb thinks it may reduce hacking losses

Bithumb is working with other cryptocurrency exchanges to recover funds, stolen from the platform earlier this week.

On Wednesday Bithumb announced that around $31.5 million worth of cryptocurrency had been stolen in the hack, which took place between late Tuesday night and early Wednesday morning. However, in a new announcement published yesterday, the company said that it might be able to lower that figure.

“We have announced about 35 billion Korean won of damages ... Bithumb is reducing the amount of damage through ongoing damage recovery, future figures are expected to be lower," Bithumb said in the announcement, as quoted by Coindesk.

The platform explained that it was working with digital currency exchanges and others to prevent further losses and retrieve the funds. It also said that it keeps company and customer funds separately.

“The company believes that you can use Bithumb safely,” the latest announcement stated.

Bithumb has already confirmed that would cover the losses from its reserves and reassured its customers that the remaining assets had been moved to cold wallets. According to crypto investor Brian Kelly, the company’s swift actions helped Bitcoin’s late comeback on Wednesday.

“They halted withdrawals and they put everything into cold storage,” Kelly said, as quoted by CNBC. “They immediately said, 'Any losses, we have reserves. We're going to pay for them. Nobody loses money.”

The Korea Blockchain Association, a self-regulatory group comprised of exchanges and blockchain startups, has also commended Bithumb for its decision to cover the hacking losses, calling it “a good way to protect our users”, Coindesk reports. Nevertheless, the group has described the hack as “embarrassing”.

Meanwhile, the he South Korean Ministry of Science and Technology (MIC) has launched a probe into the causes of the hack. On this investigation the MIC is cooperating with the local police and other agencies.

0 Brokers added for comparison:
Clear all