Millions of EOS & XRP at Stake as Bithumb gets Hacked the Second Time, Crypto Market Cap Loses $7 Billion

One of the biggest South Korean cryptocurrency exchanges, Bithumb was hacked last night for reportedly $30 million worth of cryptocurrency that involves three million EOS ($13 million) and up to 20 million XRP ($6 million).

Block explorer, XRP scan had posted on Twitter that one account was trying to send XRP to another account with some transactions going to external wallet addresses and some going to the main wallet of Bithumb. However, some transactions failed to go through which suggests exchange managed to salvage some funds.

According to the rough translation of the official announcement made by the exchange, it could be an “internal embezzlement incident,” as the act has been carried out by those who had the private keys of the account.

According to Dovey Wan, the founder of cryptocurrency investment fund Primitive Ventures, the hack occurred yesterday between one and three PM (GMT). Reportedly, the private key was stolen from EOS account g4ydomrxhege and the stolen EOS has been moved to other exchanges including Changelly, Huobi, KuCoin, Coinswitch, and EXMO.

After discovering the attack Bithumb shut down its deposits and withdrawal process as it put up a notice where it states that the exchange “detected abnormal withdrawal,” while clarifying that the “spilled” cryptocurrency is owned by the company and the users’ digital assets are under the

“protection of cold wallet.”

The exchange has notified the Cyber Police Agency and the Korea Internet and Security Agency (KISA) about the hack and is working to get the funds returned.

This is not the first time, Bithumb has been hacked, back in June 2018, the exchange was hacked for $30 million worth of cryptocurrencies. Later on, it was able to recover $14 million of stolen funds in an investigation after the hack.

This certainly had an effect on the crypto market as the green market slowly started turning red. At the time of writing, EOS has been the biggest loser in the top cryptos with 24-hours loss of 2.52 percent at $4.21. The total market cap that reached $150 billion today, lost $7 billion in a matter of few hours.

Bitcoin Exchange Guide will keep you update as the story continues.

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