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.

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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.  

Zuckerberg Says Libra Can Boost Facebook's Ad Revenue, China Sees It as a Much Bigger Deal

Facebook CEO Mark Zuckerberg has, during a shareholder meeting, explained how the Libra cryptocurrency project will help the social media giant make money. China, on the other hand, published a book addressing the challenges Libra poses, arguing it could become the future of world currency.

In a transcript posted by Thomson Reuters, we can read Zuckerberg replied to a question asked by a shareholder on how Facebook will be making money off of the Libra cryptocurrency project. Zuckerberg responded by going into Libra’s potential impact on e-commerce on Facebook, and its potential impact on advertising revenue.

According to the social media giant’s CEO, Facebook does not charge a set price for ads and instead works with a bidding system, where every business trying to advertise will bid to compete for ad space. The system, Zuckerberg said, allows them to get the “lowest possible price.”

He added that combining ads with an effective payment tool such as Libra can benefit businesses further as it could make commerce more efficient:

If we can make commerce be more effective for businesses if when they run an ad, somebody who clicks on that ad is now going to be more likely to buy something because they actually have a form of payment that works that’s on file.

Advertising on Facebook, as such, becomes more worthwhile for businesses, which could in turn see them bid higher on ads and increase overall ad prices. This would effectively boost Facebook’s 0s advertising revenue.

Zuckerberg also reiterated other advantages of Libra, pointing out the payments infrastructure “hasn’t been updated in a very long time.” China, which has plans to launch its own digital currency called DCEP, sees Libra as more than a way for Facebook to make money.

Libra Could Hit China’s Efforts to Increase Yuan Influence

In a book published by the Central Party School of China to educate government officials on digital currency and propose policy measures to deal with emerging challenges like the Libra project, experts argue the latter is an excellent example of a public-private partnership and has the potential to become the future of world currency.

This would mean, according to the book titled “Discussing Digital Currency with Leading Officials,” that Libra could get in the way of the Chinese government’s attempt to increase the influence of the yuan.

Hongzhang Wang, former chairman of the China Construction Bank and one of the authors on the book’s preface, said in a recent article:

China originally relied on mobile payment to get ahead, but now Libra has the potential to change the game again.

Wang added that this would allow companies in the U.S. to build a digital currency system that could “threaten or even surpass” Alipay and WeChat Pay using blockchain technology.

Featured image via Unsplash.