The South Korean government has launched an investigation into the latest country’s crypto hacks. The authorities are additionally conducting a “security check” on all crypto exchanges.
As previously reported by Coindoo, Coinrail, the seventh largest cryptocurrency exchange in South Korea with a 24-hour trading volume (according to CoinMarketCap), announced on June 10 that its server was hacked. Losses reached $ 40 million.
Coinrail GOT HACKED.
The Korean exchange lost around $40 mln – this caused long red candles and decreased the price of $BTC tangibly. Read more about this epic hack – https://t.co/DP3wkTDysB
We believe that #Hacken will prevent such events from happening and save the day! $HKN
— Hacken (@Hacken_io) June 11, 2018
Just 10 days later, another South Korean cryptocurrency exchange known as Bithumb announced it was hacked from late 19th to early morning of 20th June. The company has recorded losses of 35 billion worth of cryptocurrencies.
*All deposit and withdrawal service will be stopped to make sure the security. We will keep notice you of the restart of the service. We apologize for your inconvenience and thanks for your understanding.
— Bithumb (@BithumbOfficial) June 20, 2018
The Korean authorities announced on 20 June that they will begin investigating security breaches of the latest attacked crypto exchanges Bithumb and Coinrail.
“The Ministry of Science and Information and Communication Technology (hereinafter referred to as ‘Science and Technology Ministry’) and the Korea Internet & Security Agency (KISA) said that they are investigating the cause of the accident caused by the virtual currency leak that occurred in Coinrail and Bithumb,” the government’s report states.
Two days have passed since the cases are investigated. And yet, the authorities did not disclose whether or not the two cryptocurrency exchanges were hacked.
“Most companies have security weaknesses,” concluded the ministry
“As soon as a company reports a hacking incident, a KISA accident investigation worker is quickly on the scene and is investigating. In cooperation with the police, the agency will analyze and respond to the cause of the accident,” explained the South Korean government.
Between January and March 2018, the Science and Technology Ministry had the lead role in inspecting 21 cryptocurrency trading platforms in terms of security. The results showed that “most companies have security weaknesses,” and in response to the problem, several measures have been outlined to encourage platforms to pay more attention to the security issue.
The Science and Technology Ministry has announced that Coinrail has not taken any steps to resolve the issue, while Bithumb has confirmed that it “plans to check the implementation of the recommendations for complementary measures.”
The authority that conducted the investigation specified that it will engage to support the 21 crypto trading platforms investigated in order to revise their security systems: “We plan to check whether the improvement measures for security vulnerabilities have been completed.”
The ministry announced that no crypto exchange will escape investigation, as the security system is a vital issue in their activities.