Bithumb Assures Clients It Will Cover $32M Losses in Recent Hacking

Details of the latest hacking incident involving South Korean cryptocurrency exchange Bithumb remain unclear. Authorities well versed in such cases have been brought in to investigate the incident.

The Korea Internet and Security Agency (KISA), the Korean Ministry of Science and Technology (MIC), and the national police are working together to shed light on how the hackers broke the company’s security system. While the investigation unfolds, Bithumb is assuring its clients that the losses of those affected by the hack will be covered by the company, Cointelegraph reported.

The assurance was due to the growing concern that its clients have had after a tweet from the company stating it will reimburse people for the losses in the theft was deleted from its Twitter account. Now, the exchange is making it clear that it will cover the losses – which amount to $32 million – and stressed its adherence to the bifurcation between clients and company assets.

Before the attack, the company was the sixth largest crypto exchange by trade volume worldwide. Yesterday, this publication reported that the exchange dropped to the seventh place. Now, the company is ranked 12th as of this writing, revealing the setback that the theft has caused.

Bithumb said that its fiscal report for the first half of this year is slated to be released in early July. The company is hoping that the damages will “be lower” than the current amount revealed, adding that they’ll keep people posted on what the final confirmed figure will be.

Moreover, the exchange said that it is working to solidify its security measures to prevent such an attack in the future. While the company has yet to resume its operations following the incident, it assured its clients that the announcement will be posted soon.

Bithumb first noticed the attack when it observed that an entity was trying to gain access by irregular means around the late hours of June 19. To mitigate the damage, the company immediately transferred its assets to a cold wallet – a storage disconnected from the internet. However, the attackers still managed to take off with a large sum, which ultimately halted the company’s operation and dropped its ranking to where it is now.