South Korean Cryptocurrency Coinrail Exchange Hack
South Korean cryptocurrency exchange Coinrail hit by hackers causing Bitcoin prices to tumble sharply. The recent hack has renewed concerns over cybersecurity at virtual currency exchanges.
Global policymakers are struggling to regulate trading and standard security practices in the digital currency exchanges. South Korea is one of the world’s major cryptocurrency trading centres and is home to one of the most heavily trafficked virtual coin exchanges.
Coinrail said its system was hit by “cyber intrusion” on Sunday, causing a loss for about 30 percent of the coins traded on the exchange. It did not quantify its value, but in an unsourced report local news outlet Yonhap news estimated that about 40 billion won ($37.28 million) worth of virtual coins were stolen. The negative effect on the price of cryptocurrencies has seen an amount 100 times larger wiped off cryptocurrency holders portfolios with double-digit drops in the value of most cryptocurrencies in the last 72h.