Korean Government Investigates Bithumb and Coinrail Hack


The recent hack of two South Korean Exchanges, the Bithumb and Coinrail opened a question of responsibility – who’s accountable for such a huge amount of hack! Accordingly, the government of South Korea has finally launched an investigation to probe out the cause of hacks.

The Ministry of Science and Information and Communication Technology (hereinafter referred to as ‘Science and Technology Ministry’) and the Korea Internet & Security Agency (KISA) said that they are investigating the cause of the accident caused by the virtual currency leak that occurred in Coinrail and Bithumb.

  • Coinrail hack on June 10– the estimated loss counts approximately $40million
  • Bithumb Hack on June 19 – the estimated loss was $31 million worth of coins

Investigation to Check the Cause of Hacks

The report reveals that KISA began investigating the matter when the hacking incident appears. However, the authority will analyze and respond to the cause of incident by incorporating with the police.

So far, the Science and Technology Ministry bump into the investigation of 21 cryptocurreny exchanges. They say many firms lack security measures and 17 caught with “Control deficiency” whereas 16 had “insufficient network isolation”. Also, they state, the monitory system of 17 firms had “abnormality” and 18 founded to have poor security management of wallet and keys. In addition, 12 companies found with inadequate firewall and security systems.

It has been revealed that Bithumb was planning to implement additional measures while Coinrail wasn’t quite attentive. Moreover, the authority will analyze security measures of 21 crypto exchanges. And “check whether the improvement measures for security vulnerability have been completed”.

We plan to check whether the improvement measures for security vulnerabilities have been completed.

However, when the investigation on exchange conducted in early June by multiple government authorities including the National Tax Service(NTS), Korea Financial Intelligence Unit (KFIU) and Financial Services Commission (FSU), the authorities revealed that they have neither found violation of any policies nor any kind of act that points money laundering or other criminal activities on Bithumb and Upbit exchange hack.

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Disclaimer : The opinion expressed here is not investment advice – it is provided for informational purposes only. It does not necessarily reflect the opinion of Coinpedia. Every investment and trading involves risk, so you should always perform your own research prior to making decisions. We do not recommend investing money you cannot afford to lose.

Qadir AK

Qadir Ak is the founder of Coinpedia. He has over a decade of experience writing about technology and has been covering the blockchain and cryptocurrency space since 2010. He has also interviewed a few prominent experts within the cryptocurrency space.

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