Bitcoin plummets after South Korean exchange hack

Ivan Schwartz
June 12, 2018

Most other major virtual currencies also slumped, sending the market value of digital assets tracked by Coinmarketcap.com to a almost two-month low of $294 billion.

Bitcoin's tumultuous year continued over the weekend as South Korean cryptocurrency exchange Coinrail said there was a "cyber intrusion" in its system, and an unknown quantity of digital currency appeared to have been stolen.

Bitcoin is now trading at $6,757 according to Coindesk, down from around $7,200 earlier on Sunday.

A cyberheist at a little-known virtual currency exchange helped wipe billions of dollars off the value of bitcoin and other digital currencies.

The price of Ethereum also fell 9.14 percent to reach 570,000 won and Ripple dropped 9.34 percent to 640 won.

South Korea has emerged as a hotbed for trading in virtual currencies over the previous year.

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At press time, bitcoin is trading for roughly $6,700 - about $900 less than where it stood just 48 hours ago.

The statement also said the exchange is fully cooperating with a police investigation into the hacking, and that trading has been suspended for now.

Bitcoin's price has subsequently taken a hit and has been hovering above its two-month low of $6,500 today.

To protect its other assets, Coinrail said, it moved them to a "cold wallet" that isn't connected to the Internet. Before the attack, Coinrail ranked near the bottom of the 100 biggest cryptocurrency exchanges in the world by trading volume, according to data from coinmarketcap.com.

"Though the CoinRail hack may have set us off-track, I don't think that this will have very significant ramifications in the long run", he said. "The remaining one-third of coins are being investigated with investigators, relevant exchanges and coin developers".

The markets are down this morning in the wake of an alleged $40 Million hack of South Korean cryptocurrency exchange, Coinrail.

Other reports by GizPress

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