[Breaking] Bithumb Crypto Exchange Hacked; 3M EOS and 20M XRP Transferred Out, Inside Job?
Twitter User Reports Major Hacking on Bithumb As Over 3 Million EOS Leaves Exchange
Bithumb has already dealt with a major hack in its lifetime, but it looks like history is repeating itself. Whale Alert, a Twitter page that is dedicated to announcing major transactions on the blockchain, announced a transfer of 3,069,400 EOS, which is worth over $13 million USD, went from Bithumb to an unknown wallet.
— Whale Alert (@whale_alert) March 29, 2019
The amount itself is worthy of attention, but the interesting interactions with this account is more curious. After looking at the transactions, let’s label the unknown recipient of the address that received this money from Bithumb as “Wallet A.” Wallet A has only seen transactions occurring since March 28th at 6:45pm, with this as the first transaction:
The transaction is fairly small, linked to a
However, what is more interesting is that the massive 3 million EOS transfer is not the first. The transaction initially connecting Wallet A and Bithumb is only worth 1 EOS.
However, the transactions that follow tend to vary greatly. The transaction reported by Whale Alert is next, featuring the memo “1004493197.” This would normally not create much attention, except for the fact that the same memo is posted for every single transaction to Wallet A.
In total, it looks like the amount sent from the Bithumb wallet (g4ydomrxhege) to Wallet A (ifguz3chmamg) is more like 3,132,647 EOS before anything is sent out of the wallet. From there, multiple wallets received smaller increments, amounting to anywhere from 5 EOS to 100 EOS before the next transfer from the Bithumb address happened.
With a brief deposit of 25 EOS from the Bithumb wallet, the transactions out of Wallet A began again, this time reaching much higher numbers. The wallets predominantly include hitbtcpayins, kucoindoteos, exmocleosdep, huobideposit, bweosdeposit, and ys3hjcxb511n.
It is worth noting that the exmocleosdep wallet received multiple 500,000 increments of EOS, and it presently is holding 182,185 EOS. The rest of the funds, it appears, have been sent to a wallet “haztkmbvgqge,” which received them in 10,000 EOS increments. However, before the transactions from Wallet A went into this wallet, there were already transfers in from some of the above wallets that received funds from Wallet A, suggesting that they are all connected in some way. It could be a collective scam to hide where the funds are going, or multiple hackers could be contributing funds as they pull them.
The distribution of the funds from the other wallets is more scattered. The “hitbtcpayins” wallet, for example, spread the funds in many small increments, except for a transfer of 17,983 to wallet bitfinexdep1, with a memo that said, “d03ab15f63e92570050851c525b8e194.” The kucoindoteos wallet has similar distributions of funds, apart from a transaction to “kucoincenter” for 109,666 EOS. The other wallets have followed the lead of the two latter as well.
Dovey Wan, a consistent commenter on crypto exchanges, took to Twitter to discuss the matter as well.
Bithumb is being hacked, at its EOS cold storage level!!! Over 3million EOS has been transferred out 👀👀👀
Detail to be reported, confirmed by security firm who’s auditing for Bithumb
— Dovey 以德服人 Wan 🗝 🦖 (@DoveyWan) March 30, 2019
3. EOS won’t be able to freeze this time, or it’s now too late
4. Hacker has been disposing the stolen EOS via ChangeNow, a non-custodial crypto swap platform dose not require KYC/account
5. Bithumb is the only top Korean ex operator without a commercial banking partnership pic.twitter.com/SM9Wes0BI6
— Dovey 以德服人 Wan 🗝 🦖 (@DoveyWan) March 30, 2019
Even NewsBTC reported on the matter, discussing the tweets from Dovey Wan. However, Bithumb had actually posted before any of these details were uncovered, saying that they would be performing a “temporary check” on deposits and withdrawals. Now, as we can see, these transactions clearly meant much more.
With all of the negative publicity, Bithumb finally commented less than an hour ago, apologizing for the delays.
We deeply apologize to our members for delaying the cryptocurrency deposit and withdrawal service, we would like to inform you of the circumstances of the grounds and confirm that your assets are safe.
For more details >> https://t.co/dOvT78P0sK
— Bithumb (@BithumbOfficial) March 30, 2019
Within the statement, the company appears to state that the issues happening on the exchange right now have been due to, in part, insiders within their company. While an investigation is presently still going on, Bithumb posted the statement to ensure that investors understand that their funds are safe, and that the actions were due to “insufficient control of our internal staff.:
Hopefully, the company is able to gain control soon. At the time of writing, the Bithumb wallet is looking pretty light with only 3,006.6660 EOS in it. Small transactions of less than 100 EOS are going in and out, but nothing stands out more than the transaction to Wallet A.
For now prices seem stable, but we will see how that changes in the near future: