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Bithumb Hacked For the Second Time

For an exchange that was hacked previously and funds, stolen its customers were assured that its systems are now rigid and hackers won’t have any chance of hitting their exchange again. However, it’s strange we are now waking up to the fact that Bithumb has been hacked again. In June’s hacking incidence, the exchange lost 30 million US dollars while another incident of phishing activities led to the loss of bitcoins worth $1 million. In its most recent hacking incidence, reports online show Bithumb lost 20 million XRP coins and 3 million worth of EOS coins.

News of the hacking incidence reached the public domain on Saturday after Dovey Wan analyst who doubles up as a crypto entrepreneur shared findings of a security auditing firm. The latter uncovered the hacking incidence. Miss Wan shared the results with the world through her twitter accounts. Per the findings, Bithmb first thought the attack was centered on its cold storage. However, further analysis showed the exchanges hot wallets were the playing ground for the hackers. Funds stolen were passed through ChangeNow exchange. The latter doesn’t have KYC measure in place. Transactions show the funds were moved through ChangeNow exchange.

Bithumb Employees Involved

While the public is coming to terms with the hacking incidence, the exchange, on the other hand, has initiated measures to prevent any further loss. Remaining funds are being moved to cold storage to stop any further hacking. While divulging the action being taken, Bithumb admitted to its customers together with the public at large that this time around hackers had assistance from its employees. Through insiders help, they were able to hack the exchange again. However, the exchange has employed the services of reputable security firms, Cyber Police Agency, and KISA to do a thorough investigation and find the culprits. Through their assistance, Bithumb hopes the funds will be recovered. They finished off by saying they had placed robust security measures to curb external hacking incidence but didn’t expect one of their own to help hackers steal from them. With the incidence coming from the inside, they are now putting in place rigorous security systems to prevent any hacking incidence from hacking again.

Though Bithumb lost funds, moving funds into cold storage is working in favor of the exchange, and with security experts already having sprang into action, the funds might be recovered soon.