Bithumb confirms compensation to Investors.
On June 20, one of the largest exchanges of South Korea, Bithumb,fell victim to a hacking attack. It lost about $30 million in digital assets. It alerted users via Twitter. The exchange promised to compensate the losses from its own funds. But later they removed this message, which made investors a lot of nervous. The company’s representative wrote that regulators recommended that they delete the message, because at that time Buthumb did not even have the initial results of the investigation.
“We checked that some of cryptocurrencies valued about $30,000,000 was stolen. Those stolen cryptocurrencies will be covered from Bithumb and all of assets are being transferring to cold wallet.”
Bithumb Confirms Compensation to Investors
Today Bithumb has officially confirmed that it lost $ 30 million as a result of a hacker attack. Its security team intends to initiate a refund process, writes CCN.
The new statement of the exchange says that the amount of damage will be fully covered from the funds of its own Bithumb fund.
“After the incident occured on June 20, Bithumb quickly followed the procedure to immediately report the incident to KISA announcing that about 35 billion Korean Won worth amount of cryptocurrency was stolen. However, as we undergo recovery process on each cryptocurrency, the overall scale of damage is getting reduced. Hence, we expect that the overall damage will be less than the amount we initially expected,” the Bithumb exchange team reported.
Why the Bithumb Hack Did Not Affect The Bitcoin Price
Experts and regulators are increasingly warning users that they need to use only large cryptocurrency exchanges. As the example of Bithumb showed, even such platforms are not protected from hacker attacks, despite the fact that they allocate a significant part of their budget to the security of user assets. However, in this case, Bithumb confirms compensation to investors, which does not always happen on smaller platforms.
According to Charlie Lee, the creator of Litecoin, Bithumb hack does not change the fundamentals of Bitcoin. The decline in prices is typical reaction of the market to such news. It happens quite often and frightens many investors.
However, a hacker attack on a trading platform does not affect Bitcoin price just as a bank robbery does not affect the price of gold. Previously, such an idea was expressed by the analyst Onchain Capital, Ran NeuNer . He noted that the Bitcoin rate is decreasing due to the fact that investors lose interest in the coin.
Charlie Lee added that Bitcoin price will rise sharply, but he does not know when this will happen.