Bitcoin crashed after another crypto exchange got hacked

Adjust Comment Print

When the bitcoin price fell more than $1,000 and the cryptocurrency market cap shed more than $40 billion on "Bloody Sunday", many media commentators attributed the decline to a security breach at a small cryptocurrency exchange in South Korea.

What just happened? A number of digital currencies have seen their value fall following a hack on South Korean exchange Coinrail over the weekend.

It dropped 10% during the weekend and now hovers around the $6,700 mark, which is its lowest price since early April.

Enthusiasm for virtual currencies has waned partly due to a string of cyber heists, including the almost US$500 million theft from Japanese exchange Coincheck Inc.in late January. However, it revealed that some of those "leaked" include some of the less popular virtual currencies including Fundus X (NPXS), Aston (ATX), and Enper (NPER).

And cryptocurrency reporter Joseph Young contrasted the viewpoints of an office worker on Monday eager for Friday to arrive with a crypto trader going through the price headwinds. NY time on Friday and was trading at US$6,782.42 as of 10:30 a.m.in London on Monday, bringing its decline since December 29 to 53 per cent.

More news: Supreme Court OKs Ohio Voter Purge Law
More news: Assassin’s Creed Odyssey release date confirmed for October in new trailer
More news: Trump finds time to tweet before meeting with Kim Jong Un

Cryptocurrencies plunged in Asia on Monday (Jun 11) after a hack on a South Korean exchange sparked fresh concerns about the safety of the digital units. "70% of total coin and token reserves have been confirmed to be safely stored and moved to a cold wallet [not directly connected to the internet]".

Of the holdings stolen from Coinrail, the exchange says two-thirds are covered by freezing or recalling them - and that the remaining third is being investigated by police and industry experts.

"Coinrail, as of June this year, hasn't been certified with the ISMS, as it isn't mandatory (for the organisation to do so)", the local regulator said in a statement.

"We began the investigation immediately after receiving reports from the company".

Comments