Bitcoin (BTC) Network Transaction Fees Up 315% Since Bithumb Hack
Lately, the number of security breaches on cryptocurrency trading platforms has increased significantly, with the hackers aiming to steal millions worth of digital assets. The most recent victim of hacking is Bithumb, a digital currency exchange that is based in Seoul, South Korea. Reportedly, the hackers made way away with $30 million worth of virtual currencies. As expected, the attack has caused massive shock in the crypto space, given that the affected platform is among the top 10, and has previously held the top spot in its sector.
As result of the robbery, Bithumb indefinitely suspended all transactions over the network, including all deposits and withdrawals. While the actual time of the theft is yet to be determined, Bithumb shut down the operations at midnight UTC. Afterward, the exchange initiated the transfer of the surviving assets into cold wallets to prevent additional losses. Bitcoin fees went up as to fortify hot wallet capital. Bithumb first released the news of this incident through their Twitter account. The
Presumably, the theft of the cryptocurrencies resulted from the security breach. However, this is conjecture, as Bithumb has not issued an official confirmation. It is assumed that the hacker(s) exploited a vulnerable wallet containing a lesser cryptocurrency to gain access to the trading platform. As of now, Bithumb has suspended all operations as it works out a means to reestablish control over the security of its network.
As mentioned earlier, Bithumb is one of the most significant crypto trading platforms by volume, with a daily average of around $300 million. Therefore, the theft of $30 million had a severe adverse impact on Bithumb and the larger crypto space. At the time of the announcement, the price of Bitcoin plummeted by over $200. Earlier this month a similar incidence occurred at Coinrail, resulting in the loss of $37 million worth of virtual currencies, with a majority being little-known altcoins.
In the wake of this event, the founder of Litecoin, Charlie Lee, advised crypto investors to store their digital assets in secure wallets. Lee further added that only active coins should be left on exchanges, and all earnings should be withdrawn after the completion of the trading process. Charlie concluded by stating that $30 million is an enormous amount and hoped that Bithumb would devise a mechanism for recovering from such a huge loss.
Notably, this story is still developing, and Bithumb has not yet indicated how they intend to counter this problem.
Currently big backlogs and high fees on the bitcoin network. Just confirmed that it is Bithumb, cleaning out their hotwallet. pic.twitter.com/21ENfmZj56
— Sergej Kotliar (@ziggamon) June 20, 2018