Bitcoin crashed after another crypto exchange got hacked

Gladys Abbott
June 12, 2018

It did not give the value of the stolen coins but Yonhap News agency cited unnamed industry sources saying about coins worth about 40 billion won ($37 million) were lost.

Bitcoin is now trading at $6,757 according to Coindesk, down from around $7,200 earlier on Sunday.

While South Korea has become a hotbed of trading in cryptocurrencies, Coinrail is among South Korea's smaller trading platforms. That's a drop of more than 60 percent since bitcoin's all-time high of almost $20,000, which it reached last December. Since 2014, exchange hacks have cost investors at least $1.4 billion, according to an analysis by The Wall Street Journal.

The prices of Bitcoin, Ethereum, and all other major cryptocurrencies have experienced big drops in the last 24 hours, following the news that South Korean cryptocurrency exchange Coinrail has been hacked.

Bitcoin was trading at around $6,750 in early afternoon trading in Asia.

TechCrunch reports that hackers made off with $19.5 million worth of NPXS tokens issued by payment project Pundi X's ICO.

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The Coinrail incident is not the first hacking attack in Korea.

Custodians of the exchange were able to move most of their customers' holdings to the safety of a cold storage wallet, but a whopping 30 percent of its reserves was lost. Exchanges in South Korea have a history of being hit by cyberattacks.

Asia-based crypto commentator Martin Young, writing on news site newsbtc, argued that the Coinrail hack was not hugely significant globally, as the exchange is now ranked only 90th by volume.

"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.

Coinrail said it had temporarily suspended trading in digital currencies and was fully cooperating with investigators to try to track down the missing funds. "The company wasn't immediately available for further comments".

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