From Coincheck to Bithumb: 2018’s Largest Security Breaches So Far

On June 19, Bithumb, South Korea’s number one crypto exchange, was hacked. The attackers stole cryptocurrencies worth $30 million, making it one of the largest heists of the year so far. While the exchange has already promised to compensate its users, the damage has been done: yet again, it has become evident that even the biggest players cannot guarantee total safety.

Indeed, the crypto world hasn’t been the same since the Mt. Gox collapse. Still, it comes down to how these attacks are handled in the aftermath: while some go MIA or start diffusing the responsibility, others choose to rebuild their reputations step-by-step, steadily making amends with the community. Here’s how the largest hacks of 2018 so far have happened, and what their consequences have been.

Bithumb

Bithumb: “No damage” to the customers
When: June 2018
Hacker’s prize: $30 million worth of cryptocurrencies
Outcome: Drop in rating

On June 19, Bithumb, South Korea’s biggest crypto exchange, was hacked. Over 35 billion won (about $30 million) worth of cryptocurrencies was stolen. At the time of the attack, Bithumb was ranked as the sixth largest exchange by trade volumes globally but has since dropped to 10th place.

According to Cointelegraph Japan, the hackers hijacked Bithumb’s hot wallet. Coincidentally, the exchange started moving “all of asset[s]” to a cold wallet in order to upgrade its security system on June 16, days prior to the attack.

Once Bithumb’s team realized their service was being hacked, it halted all deposit and withdrawal services. In an official announcement made on June 21, the crypto exchange