Crypto Exchanges and Wallets Hacked in South Korea. Due to the increase in attacks on the cryptocurrency industry, Governments have come forward to stabilize the market. Incorporating regulations provide insulation to domestic investors.
The South Korean National Police Agency has released a report that details all the cryptocurrency exchanges and wallets that have been hacked in the country for the past three years since 2016. According to local media, a total of 7 exchanges and 158 wallets subjected to these cybercrimes, out of which 91 happened this year.
Crypto Exchanges and Wallets Hacked in South Korea. The report entitled “Status and Proportions of Hacking Harm of Virtual Money Exchanges over the Most recent Three Years” was submitted by the police agency to the Korean government and unveiled by Cho Won-jin, member of the Saenuri Party. The report states that despite over 160 attacks taking place, only 6 arrests were made, with the highest amount that had been illegally withdrawn through hacking being 112 billion won [~$99 million].
“The amount of money stolen by the hacking of cryptocurrency exchanges has been steadily increasing every year, The number of illegal withdrawals, which was only KRW 300 million [~$265,282] in 2016, increased to KRW 40.5 billion [~$35.8 million] in 2017, and two hacking cases occurred in 2018, amounting to KRW 71.3 billion [~$63 million] in theft.” -Boan News noted.
“From 2015 to 2018, there have been 158 cases of hacking of virtual currency personal wallets, in particular, 91 cases this year. However, [only] in six cases were arrests made.” -The Korean Digital Times
According to the report, there were 62 reported cases of wallet hacks a year ago. For crypto exchanges, the first incident reported in 2016. Crypto exchange Ripple4y was hacked in July 26, 2016; four exchanges: Yapizon, Bithumb, Coinis, and Youbit (formerly Yapizon) were attacked between April and December of last year. This year saw just two attacks in quick succession, Coinrail on June 10 and Bithumb on June 19.
Due to the continuous attacks on virtual currency exchanges as well as the losses incurred by many individual investors, the Korean government has stepped up its scrutiny of the crypto industry. Due to the government inspections of exchanges, many security flaws revealed and the exchanges forced to make the necessary changes. Around 21 exchanges inspected between September and December.
Min Kyung-Wook, a South Korean politician, said to Boan news, “Crypto Exchanges and Wallets Hacked in South Korea. The nature of cryptocurrency exchanges is always exposed to cyber threat…the hacking accidents occurred even in the places where the government conducted security checks.”
‘Hanwha Insurance’ is a hack insurance company to the cryptocurrency exchanges. South Korean Insurance firm set this. This is an aim to provide protection against the lost cryptocurrencies as well as the loss of personal information.