Hacked Cryptocurrency Exchange Bithumb Reopens Deposits and Withdrawals

  • Bithumb has recently announced it's going to reopen deposits and withdrawals for 10 cryptocurrencies.
  • The exchange froze these after being hacked in June.

Hacked South Korean cryptocurrency exchange Bithumb has recently revealed that, following a security breach that led to a loss of over $30 million, it’s going to reopen deposits and withdrawals on its platform today, August 4.

The exchange’s announcement was originally made via Twitter. Through a blog post, the company detailed that only 10 cryptocurrencies – bitcoin, ethereum, Ripple’s XRP, ethereum classic, qtum, litecoin, bitcoin cash, monero, zcash and mithril – were approved for deposits and withdrawals for now.

This means that, on its platform, 25 cryptocurrencies will remain suspended because of security concerns. The company’s post reads (roughly translated):

Some cryptocurrencies with a significant price difference of about 10 percent between Bithumb market and standard market will be opted out for this customer's asset. When services return to normal, rapid changes in price are expected. Therefore resuming normal services for such cryptocurrencies will be put on hold for the time being.

Bithumb

The crypto exchange further added that its users will need to create new deposit addresses if they want to add funds to their accounts, and that uncredited deposits made while its services were suspended will be returned.

Bithumb’s Security Breach

As CryptoGlobe covered the cryptocurrency exchange was hacked in June, and lost over $30 million as hackers took 2,016 BTC, 2,219 ETH, 692 BCH, and 5.2 million XRP, along with various other cryptos.

Once the breach was discovered, Bithumb quickly froze transaction services and hastily moved all of its funds stored in hot wallets to cold storage, to prevent further damage. It then went through maintenance periods and security reviews, which affected its reputation.

Since then, the exchange revealed it managed to recover $14 million, and noted it will compensate losses through a coupon-based plan. After the breach, the Korea Blockchain Association (KBA) inspected the firm’s operations, and certified it as one of the 12 crypto exchanges that passed the check, out of 23 in South Korea.

Other exchanges that passed the check were OKEx, Huobi Korea, Korbit, and Upbit. The market particularly welcomed Bithumb’s recovery, however, as it was the country’s largest exchange by trading volume before the security breach.

As covered, the exchange has started its global expansion plan as it applied for a license with Japan’s Financial Services Agency (FCA) and with Thailand’s Securities and Exchange Commission (SEC).

BIS Digital Currency Hub Chaired by Former Bitcoin Detractor

  • New digital currency division of the Bank of International Settlements (BIS) will be chaired by Benoît Cœuré.
  • Cœuré previously called bitcoin the "evil spawn" of the 2008 financial crisis. 

A former European Central Bank board member who previously made scathing comments about bitcoin will chair a new division of the Bank of International Settlements (BIS) focused on digital currencies. 

According to the press release on Nov. 11, Benoît Cœuré has been appointed to head the BIS Innovation Hub, beginning January 15, 2020. Cœuré, while still an executive board member of the European Central Bank, made headlines last year after telling Bloomberg that bitcoin was the “evil spawn of the [2008] financial crisis.”

Cœuré’s new position will oversee the BIS’s exploration into digital currencies and financial innovation. 

According to the release, 

The Hub's mandate is to identify, and develop in-depth insights into critical trends in technology affecting central banking; develop public goods in the technology space geared towards improving the functioning of the global financial system, and serve as a focal point for a network of central bank experts on innovation.

Agustin Carstens, General Manager of the BIS, said he is “delighted” to have Cœuré lead the Hub, and that the initiative reflects commitment by central banks to lay the foundation for financial innovation. 

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