Bithumb Recovers $14 Million in Hacked Cryptos, Details Compensation Plans

  • Hacked cryptocurrency exchange Bithumb has revealed it managed to recover $14 million, although it didn’t detail how.
  • It added that it’s going to compensate users through an “airdrop event,” details of which are still scarce.

Hacked South Korean cryptocurrency exchange Bithumb, which was recently hacked for roughly $31.5 million worth of cryptocurrencies, recently claimed it managed to retrieve about $14 million, and detailed a compensation plan for its users.

As CryptoGlobe covered, the exchange revealed last week that it was going to compensate investors, and that it was working to recover the hacked funds. Per a recent support announcement, the cryptocurrency exchange reduced the damages to 19 billion won (about $17 million), meaning $14 million were recovered.

According to the cryptocurrency exchange, the funds were retrieved thanks to the “ongoing participation, support, and cooperation of the cryptocurrency exchanges and cryptocurrencies foundations across the world.”

It further touted the fact that the damages weren’t more severe thanks to its quick response, as Bithumb quickly moved most cryptocurrencies from its hot wallets to cold storage. Its recent announcement details that 11 cryptocurrencies were stolen, with bitcoin accounting for the majority of losses, with 2,016 BTC (worth about $12 million) being stolen.

damages.png

The hackers also managed to take 2,219 Ethereum, 692 Bitcoin Cash, and 5.2 million XRP, along with various other cryptocurrencies like Golem, OmiseGo, aelf, and more. In its update, Bithumb noted users shouldn’t deposit funds in the platform until “the whole process of deposit service is reformation is complete” and an announcement is published.

The hacked exchange added a few details regarding its plan to compensate investors. It had in the past revealed that it has about 500 million KRW ($450 million) in its coffers, and now noted it’s setting up a “compensation airdrop event.”

The event will see every Bithumb user receive a coupon that’ll seemingly allow them to trade for free for a specific period of time. Those who were affected by the hack and apply to be compensated will receive an airdrop “for holding cryptocurrencies.”

Details on said airdrop are still scarce, although the announcement seems to imply users will benefit from a 10 percent annual appreciation rate “over the period of the event.” Per Bithumb’s announcement, the cryptocurrency that’ll be airdrop still hasn’t been decided.  

Weekly Newsletter

Coinbase Quietly Pulls the Plug on Its Cryptocurrency Bundle Product

Francisco Memoria

The San Francisco-based cryptocurrency exchange Coinbase has quietly pulled the plug on its Bundle product, which allowed users to buy a basket of cryptocurrencies with fiat.

According to an update on its FAQ page, the cryptocurrency exchange “deprecated” the Coinbase Bundle product, and all assets in it have been “redistributed to their respective individual asset wallets.”

The move, first spotted by Crypto Briefing, is believed to have been made because the product wasn’t a profitable one. Coinbase Bundle was launched back in September of last year to make it easier for investors to gain exposure to the cryptocurrency ecosystem, through a weighted basket of the cryptocurrencies the company then offered.

This means users could use a small amount of fiat to buy bitcoin, litecoin, ethereum, bitcoin cash, and ethereum classic at once. Per the exchange itself, the bundle’s purpose was to “make buying more convenient and less overwhelming.”

At the time, the exchange also launched other features: Coinbase Learn and new asset pages.

The timing was off, however, as the product was launched during the bear market that saw the price of most cryptocurrencies drop well over 80%. Images shared on social media in December of 2018, when bitcoin hit its $3,200 low, showed investing $100 on Coinbase would’ve led to significant losses only a few months later.

As covered, Coinbase recently launched a service offering its users four free exclusive “trading signals,” in a bid to help its customers “independently create and manage their own crypto strategy.”

It’s worth noting Abra, a digital asset exchange and wallet provider,  launched a product packaging various cryptocurrencies into one at about the same time Coinbase launched its Bundle product. Abra’s product is its BIT10 token.