Exchanges

Three years in the hands of hackers: South Korean crypto exchanges count massive losses

Virtual currencies brought a chance for everyone. Investors, traders, and hackers alike. Hackers have been having a parasitic relationship with cryptocurrency traders and investors. The last three years in the hands of hackers saw cryptocurrency exchanges lose approximately 99 million U.S dollars.

Unfortunately, the hackers were smart enough to maneuver even the strongest cryptocurrency security measures to infiltrate 7 exchanges and 158 crypto wallets. According to findings by the police in South Korea, the popularity of digital currencies in 2017 saw so many people board the crypto train. Unfortunately, hackers saw a chance to also cash in on the hype.

In 2017, South Korean crypto exchanges contributed a bigger percentage of the 35 million U.S dollars lost worldwide. This was a very huge increase from the 262K U.S dollars loss experienced in 2016.

Even though the hype did not close over to 2018, hackers followed the trail into 2018 where cryptocurrency exchanges have experienced the highest levels of losses and hacks alike. According to the report released by the S. Korean police and which was titled ‘Status and Measure of Hacking Damage of Virtual Currency Exchanges in the Last Three Years,’ 2018, although not over yet, was a happy year for hackers who drowned 63 million U.S dollars from cryptocurrency exchanges all over the globe.

Out of the 158 cases reported, six cases, which is a minimal number, of arrests have been made. The hacked South Korean exchanges include Bithumb, which has suffered two hacks, Coinrail, and Youbit.

However, arrest on hackers is very difficult considering that tracing their footprint all around the internet is difficult since it requires specialized skills and equipment. Being hackers, covering their tracks is a major bit of their operations

Do you think the three years in the hands of hackers paint a clear picture of the losses incurred by cryptocurrency exchanges or the values could be higher both in South Korea and the world at large?

Let us know your thoughts in the comments section below.

coinmag

Philip is an experienced blogger keen on staying updated with trends and news surrounding the blockchain and Bitcoin space. With several years of freelance experience in various industries, Philip brings his knowledge and experience into the crypto space.

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