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Breaking: Bithumb exchange hacked again; over 3 million EOS might have been transferred out of its hot wallet




Breaking: Bithumb exchange hacked again; over 3 million EOS might have been transferred out of its hot wallet
Source: Unsplash

After the infamous Cryptopia hack in January and the sudden death of QuadrigaCX’s CEO, Bithumb, a South Korean cryptocurrency exchange seems to have been hacked yet again, resulting in loss of over 3 million EOS worth approximately $13 million, at press time.

According to Primitive Ventures’ Dovey Wan, the exchange was hacked and the hot wallet for EOS had been breached by the hacker.

The private key for the EOS account belonging to the exchange was stolen, allowing the hacker to siphon more than 3 million in EOS. Wan also mentioned Bithumb’s EOS address “g4ydomrxhege,” from which the EOS was supposedly transferred to the hacker’s address, “ifguz3chmamg.” The blockchain explorer for the hacker’s address showed a massive number of outgoing transactions to different exchanges.

According to Wan, much of the siphoned EOS was sent to other exchanges such as EXMO, Huobi, Changelly, KuCoin, and CoinSwitch. She also mentioned that the hacker still had 1.9 million EOS in the wallet. However, at the time of writing, the aforementioned address had only 0.0011 EOS, while the exchange’s address had a balance of 3,006 EOS.

The CEO of Binance, Changpeng Zhao, tweeted about the hack,

He also added an image, naming the addresses that sent funds to the hacker’s address.

Source: Twitter | @cz_binance

Wan also mentioned a hacked XRP wallet [rLaHMvsPnPbiNQSjAgY8Tf8953jxQo4vnu] signed by Bithumb, which had only 37.72 XRP, at press time.

According to Wan, the timeline of the hack was as follows,

“(SGT time zone)
3/29 9:40AM – Hacker account ifguz3chmamg was created via accountcreat
3/29 9 to 11PM – Bithumb wallet g4ydomrxhege has been transferred out 3,132,672 EOS to the hacker account, total 16 transactions”

Whale Alert, a Twitter account tweeted that a total of 3,069,400 EOS worth approximately $13.45 million was transferred from Bithumb.

After much hue and cry online, the South Korean exchange finally released a statement explaining the abnormal activity. It said,

“As a result of the inspection, it is judged that the incident is an accident involving insiders because the external intrusion path has not been revealed until now. Based on the facts, we are conducting intensive investigations with KISA, Cyber Police Agency and security companies. At the same time,  we are working with major exchanges and foundations and expect to recover the loss of the cryptocurrency equivalent.”

@Cryptokatia, a Twitter user had this to say about the episode,

The first Bithumb hack resulted in losses of approximately $31 million. The targeted cryptocurrency in that instance was XRP. Bithumb had then announced its intention to pay back victims using its own reserves, soon after the hack.

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Akash is your usual Mechie with an unusual interest in cryptos and day trading, ergo, a full-time writer at AMBCrypto and a part-time novice trader.