South Korean Authorities Report On Scale Of Attacks On Crypto Exchanges
Starting from 2016, intruders hacked seven trading platforms in South Korea, Bitcoin.com reports referring to the statement of local law enforcement agencies.
According to the data provided by the police, seven crypto exchanges were hacked over a period of three years, and the attackers managed to withdraw $99 million (112 billion won). In 2016, scammers stole funds worth $265,282 (300 million won), and next year the amount reached $35.8 million (40.5 billion won). As of 2018, the crypto exchanges have suffered losses of almost $63 million (71.3 billion won).
Moreover, since 2016, the police have recorded 158 cases of crypto wallets hacking. More than half of these (91 crypto wallets) were hacked in 2018, as stated in the document. Nevertheless, the fraudsters involved in only six cases were arrested.
It follows from the report that in 2016 regulators recorded only one crypto exchange that suffered from an attack — Ripple4y, which was hacked on July 26, 2016. The following year, the attacks on four exchanges, namely Yapizon, Bithumb, Coinis, and Youbit, were registered. Youbit (former Yapizon) changed its name after the intrusion in April 2017 but was attacked by crypto fraudsters again. Coinrail and Bithumb became victims of cybercriminals in 2018.
Min Kyung-wook, the representative of the Korean legislative branch, noted that crypto exchanges are always exposed to hacker attacks, even if the government carefully checks the activity and protection system of trading platforms. For instance, Youbit, after the audit in October 2017, was still hacked two months later.
As previously reported, a South Korean insurance company will offer its services to crypto exchanges in case funds are stolen.