Published: Mon, June 11, 2018
Markets | By Otis Pena

Bitcoin crashed after another crypto exchange got hacked

Bitcoin crashed after another crypto exchange got hacked

Coinrail said in a statement on its website that some of the exchange's digital currency appears to have been stolen by hackers, but it did not quantify the value.

Bitcoin has dropped 11% since 5pm NY time on Friday and was trading at $6,784.04 as of 10.21am in Hong Kong on Monday, bringing its year-to-date loss to 53%.

Although the exact amount of the coins stolen was not specified, local news outlet Yonhap has suggested that the total value of stolen cryptocurrencies is estimated at $37.1 million. The venue added that 70 percent of the cryptocurrencies it holds are being kept safely in a cold wallet, which isn't connected to the Internet and is less vulnerable to theft.

Investors and regulators were jolted earlier this year after Japan's cryptocurrency exchange Coincheck was hacked in a high-profile theft of over half a billion dollars worth of digital currency.

Pundi X stated on its blog that the decentralized cryptocurrency exchange IDEX (where the stolen funds had been moved) agreed to urgently freeze the trading of NPXS coins on its platform, and all the stolen coins remain traceable for now. More recently, in December a year ago, South Korean cryptocurrency exchange Youbit shut down and filed for bankruptcy after being hacked twice. "It is a minor player in the market and I can see how such small exchanges with lower standards on security level can be exposed to more risks", Kim Jin-Hwa, a representative at Korea Blockchain Industry Association.

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Coinrail last traded over $2.48 million in 24 hours before the hack; making it one of the top 100 cryptocurrency exchanges in the world as per CoinMarketCap data.

Coins other than Pundi X seem to have been transferred to a wallet at another decentralized cryptocurrency exchange, Etherdelta.

"The remaining one-third of coins are being investigated with investigators, relevant exchanges and coin developers."

The Korean National Police Agency didn't immediately reply to a request for comment.

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