Cryptocurrency

South Korean Crypto-Exchange company hacked facing a $40 million loss

Avatar Written by Muniza Imran · 1 min read>

South Korean crypto exchange company, Coinrail was hacked earlier last Sunday, 10th June 2018, causing a loss of almost $40 million, with NPXS being the most affected currency. An unauthorized exchange transferring NXPS tokens to IDEX took place. The South Korean Law enforcement is now working with Coinrail to apprehend the perpetrators as soon as possible. Later on, IDEX blocked the exchange of NXPS at the request of the local law enforcement agencies.

Email from Inspector

Pundi X, a cryptocurrency exchange company, is also assisting Coinrail with the matter. Their website states that:

To assist in the Coinrail incident investigation, we have temporarily halted all NPXS transactions in order to freeze the tokens hacked from the Coinrail exchange at the request of the Korean National Police Agency. You can read the full details here.

The list of currencies that might have been stolen during the intrusion are:

  1. 1,927 Ether
  2. 2.6 billion NPXS
  3. 93 million ATX
  4. 831 million DENT coins

A few other extremely valuable tokens were also found to be missing. Many cryptocurrencies declined after the incident with Bitcoin falling down 12% since last Friday. A report from Bloomberg explains why Bitcoin continues to decline at such a rate. The company, however, has promised their investors that the matter will be resolved soon, and all the assets will be given back to them. Pundi X and Korean Law Enforcement are working endlessly to protect the “downfall” of Coinrail. Coinrail stated that:

The company, however, has promised their investors that the matter will be resolved soon, and all the assets will be given back to them. Pundi X and Korean Law Enforcement are working endlessly to protect the “downfall” of Coinrail.

Coinrail is considered to be South Korean’s biggest cryptocurrency trading company. It has served as a trustworthy platform for registered users to trade digital currency for several years. Failure by the company to compensate for the losses is likely to take a huge toll on its user base along with a permanent blow to the overall business of crypto trading companies in South Korea. Last but not the least, this will also have an adverse effect on the exchange rate of cryptocurrencies.