Coinrail is the South Korean digital exchange which was attacked back in June 2018. According to Bloomberg News, the result of the hack dropped the crypto market worth $42 billion.
In accordance with Yonhap News Agency, the hacker theft 40 billion won or around $37 million worth of cryptos, the majority in Pundi X and Astoncoin.
Coinrail Services Resumed
After the hack, the platform discontinued trading and tried to completely recover the lost coins. Coinrail resumed the service on July 15, declaring:
We have completely revamped the existing security system that exposed the vulnerability, and have upgraded the overall security level.
The cause of the attack is not yet disclosed by the exchange when it resumed trading- Sedaily noted.
“KISA [The Korea Internet & Security Agency] is in the process to finalize the investigation, however, it is still under analysis, and the incident details cannot be revealed,” the news outlet quoted a KISA official stating. Coinrail assures that its new security assets system “complies with KISA security guidelines.”
The exchange is, however, trying hard to cope with the funds that the clients lost. They are implementing additional recovery methods as mentioned on the official site.
11 Digital Currencies Were Affected
Coinrail stated that the total of eleven cryptos was theft including:
- Dent (DENT)
- Tradove b2bcoin (BBC)
- Ether (ETH)
- Jibrel network (JNT)
- Bitcoin (BTC)
- Kyber network (KNC)
- Storm (STORM)
- Tron (TRX)
- Pundi x (NPXS)
- Aston (ATX)
- Nper (NPER)
The cryptos DENT, ETH, and BBC have been completely recovered. Also, these cryptos are available for trading and withdrawals. The recovery is in progress for JNT. The last seven cryptos have not been yet resolved.
The exchange clarified, “the funds that are not stolen or in the list of recovery process can be instantly withdrawn and traded. Coinrail also added:
The amount of cryptocurrencies that have not been recovered cannot be withdrawn or exchanged until the recovery is complete.
The Recovery Options
Coinrail has figure out the two recovery plans for the remaining coins to be recovered. However, these plans have been condemned as being inadequate.
The initial plan is for Coinrail to buy cryptos directly to cope with the loss. Coinrail states “it will pay back the lost cryptos by gradually acquiring the cryptos with the profit from the operating service.”
The second plan is for the exchange to issue its RAIL tokens to influenced clients.
“Unrecovered cryptocurrencies can be exchanged at a rate of ‘1 RAIL = 0.72 KRW,’” Coinrail noted. However, the price of RAIL “fell about 72.2 percent in about half a day [to 0.2 KRW] after Coinrail officially resumed trading at 8 pm on the 15th,”- mentioned Sedaily.
What do you think will Coinrail be able to compensate the losses? The exchange plan will work or fail? Share your thoughts in the comments section below.
Image Source: Coinrail