June 20th did not prove a good day for South Korea’s biggest Crypto Currency Exchange as Bithumb reported that $30 Million had been stolen due to a hack on the exchange’s platform. The next day, Bithumb said, the company is making efforts to retract the stolen amount. The Crypto Currency exchange is hoping to recover at least some of the stolen amount. Bithumb took to various social media platforms to share this information and made an official statement which said “We checked that some of the cryptocurrencies valued about $30,000,000 were stolen. Those stolen cryptocurrencies will be covered from Bithumb and all of the assets are being transferred to the cold wallet.”
What was frustrating for the Investors, was that this statement was retracted without giving any further clarification. Later the company said that they wanted to investigate the matter properly before making any further official statement. The company has reported everything to The Korean Internet and Security Agency.
What steps did Bithumb take to protect its customers?
Investors were relieved to find out that they will be compensated by the company for any kind of damage. This should also act as a lesson for all investors that there are various perks of using major Crypto Currency Exchanges.
The Bithumb hack was a large-scale hack and the company has suspended trading activities for it’s customers temporarily. The company is working on the security of their platform and are making continuous improvements to it. The Company was also confident about recovering the stolen funds and bring down the amount of damage.
What are the effect of the Bithumb hack on cryptocurrency Prices?
After the news of this hack, there was a price drop in all major cryptocurrencies. Bitcoin prices dropped by $200 within an hour of announcing the stolen crypto-currency. But according to the Litecoin CEO, it was just due to the reaction of investors, and any such of hacks or incidents, do not affect the fundamentals of any CryptoCurrency.
What is Litecoin CEO Charlie Lee’s reaction?
This is what the Litecoin CEO and founder Charlie Lee had to say about the price drop:
“If the exchange does not protect the coins well enough and gets hacked, it doesn’t really change the fundamentals of the coin they are protecting.”