Has Bithumb been hacked for tens of millions of crypto? EOS Blockchain suggests this

Months after the Cryptopia debacle and just days after the DragonEx Imbroglio, reports and blockchain data suggest that Bithumb, South Korea’s largest crypto exchange, has been hacked (again) for a large amount of EOS and possibly XRP.

When the Korean exchange was last attacked, it lost approximately $ 30 million (of which $ 14 million was later recovered) and was tasked with shutting down its deposit and withdrawal services for months.

Related Reading: Breaking News: Bithumb Hacked For $ 30 Million In Cryptocurrencies, Market Falls

Bithumb hacked again, this time for more than $ 10 million in crypto

According to Primitive Ventures’ Dovey Wan, who cites data from local blockchain analysis teams, cybersecurity companies and other sources, Bithumb’s EOS wallet was hacked on Friday, resulting in three million EOS tokens being chased away. That sum of crypto, for those who are wondering, is currently valued at $ 12.5 million at the time of writing.


Bithumb is being hacked on its EOS cooling stage !!! Over 3 million EOS have been outsourced ???

Details to report, confirmed by the security company checking for Bithumb

– Dovey Wan ?? (@DoveyWan) March 30, 2019

A preliminary look at the affected wallet suggests that this was Bithumb’s hot wallet rather than the cooling system, which underwent immense scrutiny during the platform’s most recent security flaw.

The reason analysts think this is a hack is because of the distribution of the three million EOS that have been sent to exchanges like EXMO, Huobi, Changelly, KuCoin, and CoinSwitch. Interestingly, however, 63% of the hacked funds remain in the attacker’s alleged wallet.

According to CoinDesk Korea, which apparently confirmed the report, EOSauthority’s Rohan appears certain that Bithumb’s private key for the aforementioned wallet has been stolen. Bithumb has reportedly since reached out to other trading platforms, government agencies, and higher officials in the EOS ecosystem to help mitigate the impact on the broader crypto industry.

Since the suspicious transaction, Bithumb has closed its deposit and withdrawal portal and cited the need for “more stable service”. However, in the announcement of this event, the word “hack” or “EOS” was not specifically mentioned, but many argue that the hack’s schedules and sudden maintenance time coincide.


Will EOS block producers take action?

While for most other cryptocurrencies, especially Bitcoin, these supposedly hacked transactions would be irreversible, a change in this situation could be possible for EOS. For those who missed the memo, EOS’s Block Producers (BP), equivalent to Bitcoin’s miners, have the ability to reverse transactions and freeze accounts in drastic situations.

Nine months ago, BP EOS42 said it had frozen seven accounts. Months later, users reported on Reddit that a crypto platform arbitrator was allegedly able to reverse a transaction that took place without the express permission of an account holder. It is not clear whether there is an entity in the ecosystem right now that has the same capabilities.

Even if there is a BP or similar crypto stakeholder who could freeze the hacker in their tracks, some claim it is too late.

Wan writes that Bithumb’s EOS funds have already deposited the tokens on non-custodial, KYC-free exchanges like ChangeNow and Changelly, likely for a privacy-conscious asset like Monero (XMR).

3. EOS cannot freeze this time or it is too late now

4. Hacker dumped the stolen EOS through ChangeNow, an unprotected crypto-swap platform that does not require a KYC / account

5. Bithumb is the only Korean ex-operator without a commercial banking partnership pic.twitter.com/SM9Wes0BI6

– Dovey Wan ?? (@DoveyWan) March 30, 2019

This is a nasty situation. NewsBTC will make sure to keep you posted for updates on this situation. So stay tuned.

Featured image from Shutterstock

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