Bithumb Hacked Again: Over 3 Million EOS Transferred Out From Exchange’s Hot Wallet

According to early reports from security researchers, South Korean cryptocurrency exchange Bithumb has suffered a major attack that started on Friday (March 29) around 01:40 UTC. (This is the second major attack on Bithumb, with the first one occurring in June 2018, when the exchange lost $30 million in crypto.)

One of the first people to report the news of the attack on Bithumb was Dovey Wan, a founding partner at Primitive Ventures:

According to Dovey's Twitter thread and information we have gathered from other sources, here is what seems to have happened so far (all time information is in UTC):

  • The attack started on March 29 at 01:40 with the hacker creating EOS wallet "ifguz3chmamg”.
  • Between 13:16 and 15:35 on March 29, 3,132,672 EOS were transferred from wallet address “g4ydomrxhege” (which belongs to Bithumb) to wallet address “ifguz3chmamg” (which belongs to the hacker) in 16 transfers.
  • Around 15:21 on March 29, the hacker started transferring the stolen EOS to various other crypto exchanges (including Huobi, HitBTC, and Changelly). 
  • Around 16:08 on March 29, Bithumb started transferring the remaining balance at wallet address “g4ydomrxhege” to its cold wallet (“bithumbshiny"), a process that is still ongoing at the time of writing (08:42 on March 30).

Here are some more updates from Dovey regarding the stolen EOS:

And here is Binance CEO Changpeng Zhao ("CZ") providing some further information on the whereabouts of the stolen EOS:

CZ also confirmed that so far none of the stolen EOS has made its way to Binance:

Also, it seems that over 20 million XRP tokens were stolen as well:

This is the latest tweet (sent out at 04:28 UTC on March 30) from Bithumb's account:

According to the latest notice posted on Bithumb's website, it seems that the exchange thinks that this was an inside job, it has allerted the authorities, and is working on recovering the stolen funds. 

As the story develops, we will update this article...

JPMorgan Chase Accused of Fixing Metal Prices Despite Talk of Bitcoin Market Manipulation

  • Wall Street giant JPMorgan Chase's metals desk has been accused of 'thousands' of trades related to price-fixing.
  • US prosecutors have invoked RICO laws against the bank which are reserved for organized crime rings. 

While the U.S. Securities & Exchange Commission (SEC) and other regulatory bodies have been critical of bitcoin over market manipulation, new reports reveal that JPMorgan Chase is facing allegations of fixing prices for precious metals. 

JPMorgan Chase Price-Fixing

According to a report by Bloomberg on Sept. 16, U.S. prosecutors have invoked the racketeering law (RICO) against JPMorgan Chase’s metals desk, which is being described as a criminal enterprise. For nearly a decade, employees of the trading desk have allegedly engaged in thousands of illegal moves to price-fix precious metals and defraud market investors. 

Assistant Attorney General Brian Benczkowski told journalists, 

Based on the fact that it was conduct that was widespread on the desk, it was engaged in in thousands of episodes over an eight-year period -- that it is precisely the kind of conduct that the RICO statute is meant to punish.

RICO is typically reserved for only the most severe, organized crime rings, with former prosecutors calling it a bold move by the Justice Department against the bank. Prosecutors claim that more than a dozen employees participated in the scheme, with two having already pleaded guilty and cooperating with authorities. 

Crypto supporters have been quick to point out the irony in JPMorgan’s situation. Jamie Dimon, CEO of the Wall Street bank, has been one of the most vocal detractors of bitcoin over the years, famously calling the crypto-asset a “fraud” in Sept. 2017.

 

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