99 million dollar stolen from Crypto exchanges in South Korea. In South Korea, approximately $99 million have been illicitly withdrawn by hackers from crypto exchanges and wallets.
South Korean national police Agency revealed a report named “Status and Measures of Hacking Damage of Virtual Currency Exchanges in the Last Three Years,”. This disclosed all cryptocurrency – associated hacks since 2016 that have betrayed South Korean users. It says till now hackers have vandalized seven local cryptocurrency exchanges and 158 wallets Conversely, police have arrested only six cybercriminals related to these cases in the same span of time.
As the years go the cryptocurrency-related hacks shown growth. In the year 2016, the cryptocurrency related hackings were lesser compared to hackings reported in the following years
A section from the report says that “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 [$265,280] in 2016, increased to KRW 40.5 billion [$35.9 million] in 2017. Also, two hacking cases occurred in 2018, amounting to KRW 71.3 billion [$63 million] in theft,”
In 2016, Only Ripple4y (local crypto exchange) reported an attack when hackings related to crypto were low. But the next year showed a significant increase in crypto-related hackings as Apizon, Bithumb, and Youbit (local crypto trading platforms) confirmed attack. In 2018 Coinrail and the second from Bithumb complained to police for hacking incidents.
The police report found that more than 50 percent of the total reported attacks took place in the year 2017. This is when Bitcoin and other crypto market were moving towards their all-time highs.
Crypto exchanges failed a security test in South Korea
99 million dollars stolen from Crypto exchanges in South Korea. In the past, the South Korean government alerted local cryptocurrency exchanges for security and privacy purpose. Interestingly all these results were adverse which helped hackers to hack exclusively after the government alerted for their security reasons in public. Many believed that the South Korean government’s statement in public was the reason for the hackers to get cues.
For instance, YouBit got hacked in December after its inspection in October. Similarly, hackers attacked Coinrail and Bithumb after they were inspected and pointed out by the government.
For example, In December Youbit got hacked after its inspection in October. Moreover, Coinrail and Bithumb got hacked after they were inspected. Besides these the only South Korean exchange to get hacked twice is Bithumb.
Hong Seong-ki who is the head of virtual currency response team at the country’s main financial agency Financial Services Commission (FSC) has said in one of the interviews that cryptocurrency exchanges in South Korea are not ready to store and manage billions of dollars because of their substandard security measures.
South Korean lawmaker Min Kyung-Wook said that “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,”