South Korean Crypto Exchange Loses $37m in Cyber-Attack
In a recent cyber-attack, a South Korean crypto-currency exchange has reported a loss of virtual coins worth $37m. Coinrail, the affected exchange, disclosed that the attack took place early on Sunday.
The exchange reassured its users that 70% of their total coin/token reserves were securely transferred to a cold wallet for safekeeping. It also mentioned that efforts were being made to freeze/recall two-thirds of the stolen coins in collaboration with relevant parties.
Unfortunately, the remaining one-third of the leaked coins, including Fundus X (NPXS), Aston (ATX), and Enper (NPER), are still under investigation. The exchange is currently assessing the full extent of the damage caused by the attack, with initial estimates pointing to around 40 billion won ($37m).
Market Impact and Previous Attacks
Following the cyber-attack, Bitcoin’s value reportedly dropped by over 10%, demonstrating the immediate impact of such incidents on the market. Coinrail’s lax security measures have been cited as a possible reason for the breach, as it did not adhere to the stringent self-regulatory standards adopted by other exchanges in South Korea.
This attack adds to a series of cyber-attacks targeting crypto-currency exchanges in recent years. In 2018, Bithumb, another South Korean exchange, suffered a data breach affecting 30,000 users and resulting in $1m in losses. Additionally, Tether, a crypto-firm, lost $30m worth of tokens in November of the same year.
Ernst & Young’s findings in January revealed that nearly $400m had been stolen from initial coin offerings (ICOs), highlighting the growing threat of cyber-attacks in the crypto-currency space.
North Korean Involvement
Researchers have identified North Korean hackers as significant players in targeting virtual currencies to fund the regime of Kim Jong-un. Their involvement in cyber-attacks on exchanges and ICOs underscores the need for heightened security measures within the crypto-currency industry.
As Coinrail continues to collaborate with investigators to mitigate the impact of the attack, the incident serves as a stark reminder of the vulnerabilities facing crypto-currency exchanges and the urgent need for enhanced security protocols.