Coinrail Exchange Hacked With $40 Million in Crypto Stolen, BTC Plummets - Bitsonline

Coinrail Exchange Hacked With $40 Million in Crypto Stolen, BTC Plummets

Coinrail – one of the most popular cryptocurrency exchanges in South Korea – reported a hack on its website during the early morning hours of June 10. It is estimated the exchange lost over $40 million USD in assorted tokens and altcoins.

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It’s Happened Again, Folks!

While not as large as some other trading platforms, Coinrail still ranks amongst the world’s top 90 digital currency exchanges. At press time, the hackers are alleged to have run off with nearly $20 million worth of NPXS (PundiX) tokens; $14 million of Aston X; $6 million in tokens for Dent, and over $1 million in TRON.

The company later announced on its website that the wallet belonging to the attacker has been identified, and that “70 percent of its total coin/ total reserves were safe.” In addition, the website exclaimed that “two-thirds of the coins confirmed to have been leaked are covered by freezing/recalling through consultation with each coach and related exchanges.”

Coinrail logo

Looking at What Occurred at Coinrail

At press time, Coinrail’s services are still offline. Representatives claim that the remainder of its assets have been moved into cold storage, and that Coinrail’s security systems are being reevaluated. An investigation is now underway, and trading should resume once executives figure out how to approach the situation.

Some are blaming the hack for bitcoin’s subsequent price drop. During the early morning hours, the father of cryptocurrencies was trading for as low as $7,200, though at the time of writing, bitcoin has dropped even further down to $6,700 – approximately $900 less than where it stood just 24 hours ago.

Something Bigger in the Midst

This could possibly be attributed to subpoenas being issued to four major digital currency exchanges by the Commodity Futures Trading Commission (CFTC). After opening a probe into possible bitcoin price manipulation, the government agency is asking platforms like Coinbase, Kraken, itBit and Bitstamp to hand over relevant trading data from December of last year and on so authorities can see if manipulative bitcoin futures trading has had any effect on the price.

So far, the exchanges are refusing to cooperate, saying that the release of such information to the organization would be an infringement of customers’ privacy. Amidst all the hype and hoopla, the prices of all major cryptocurrencies – including bitcoin, bitcoin cash, EOS, Ethereum ether, Ripple XRP, and litecoin – are caught in the middle, and moving deeper into the red.

Coinrail trades more than 50 different cryptocurrencies, and has a 24-hour trading volume of roughly $2.65 million.

Is it time for some solid regulation? What will it take to stop hacks altogether? Post your comments below.

Images via Coinrail, Pixabay

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