Bithumb embarrassment as it loses $5 million XRP in addition to $13 million EOS

Bithumb embarrassment as it loses $5 million XRP in addition to $13 million EOS

BitHumb, a South Korean cryptocurrency exchange, has been in crypto news for a hack that has lead to the loss of over $13 million worth of EOS cryptocurrency. The EOS coin, which is the fourth largest cryptocurrency by market cap, was stolen over the course of the weekend. News broke out this morning about the hack and Bithumb have been in a daze ever since.

Upon hearing about the hack, community members then noticed that the exchange lost a significant amount of XRP as well. An XRP Ledger explorer on Twitter, called XRP scan, stated that “pages and pages 90 000 XRP are going out of this wallet: rLaHMvsPnPbiNQSjAgY8Tf8953jxQo4vnu.”

There were over 200 transactions made, with each transaction containing 90 000 XRP. Since there are transactions that were made to another Bithumb account, there is speculation that the company might have been able to recover a part of the funds lost.

The exchange has not kept quiet about the attacks, and in response to the XRP theft they had the following to say (translated from Korean):

“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.”

The exchange continued that they had noticed abnormal trading going on through their automated systems. They proceeded according to the security manual that has been in operation at the company and secured all the cryptocurrency into a crypto wallet. They then proceeded to check them, blocking the deposit and withdrawal service at the same time.

The company finished by saying that the service was being shored up and would resume as soon as possible.

More information forthcoming

The company has said that it thinks this is an inside job. They are involving the police into the matter and they have assured their clients that they will recover all the cryptocurrency that has been stolen over the course of the last two days. They will also work with other crypto exchanges to trace where the money has been sent.

Twitter has been a constant source of information. Binance CEO has checked and believes that none of the EOS has been sent to Binance. He added that he thinks that hackers simply do not want to deal with the “big data risk management” that Binance have set up.

Dovey Wan, a founding partner at Primitive, was able to keep up with where all the stolen coins were being sent. He kept up a commentary on Twitter for all the community members who were interested in seeing how the attack unfolded. He was among the first to notice the missing XRP and has given out the information on what exchanges and wallets the coins were sent to.

A diagram that has been sent between various industry leaders and insiders shows the flow of the money from the main wallet where the coins were taken from.

More information is not available at this time, as Bithumb would like the investigation to proceed as quickly as possible.

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      A journalist, with experience in web journalism and marketing. Ali holds a master's degree in finance and enjoys writing about cryptocurrencies and fintech. Ali’s work has been published on a number of cryptocurrency publications.