Published: Mon, June 11, 2018
Finance | By Claude Patterson

Bitcoin crashed after another crypto exchange got hacked

Bitcoin crashed after another crypto exchange got hacked

It notes that Bitcoin was trading at $6,790.88 on Bitstamp, a drop of 10.8 percent from Friday and a massive dip from its December 2017 peak, when it hit an all-time high of nearly $20,000.

Coinrail confirmed in a statement on its website that some of the exchange's digital currency appears to have been stolen by hackers, but it did not quantify its value.

"The heist at Coinrail, a relatively small South Korean cryptocurrency exchange, sent the price of bitcoin tumbling to two-month lows as it once again highlighted the security risks and the weak regulation of global cryptocurrency markets".

Although the exact amount of the coins stolen was not specified, local news outlet Yonhap has suggested that the total value of stolen cryptocurrencies is estimated at $37.1 million.

Bitcoin was trading at $6,780, down from more than $7,500 before the weekend, according to Coindesk, which monitors prices.

A cryptocurrency exchange hack in South Korea jolted holders of digital assets, fueling a $46 billion rout and extending this year's Bitcoin slump to more than 50%. Popular cryptocurrency exchange, Bitfinex - infamous for its $68 million hack in 2016 - suffered a domain denial of service (DDoS) attack last week.

The frozen tokens are Pundi X (NPXS), Aston (ATX) and Nper (NPER), according to the local crypto exchange.

In a statement, a representative from the Korea Blockchain Industry Association, a self-regulatory group, revealed the exchange wasn't a member of the working group.

Coinrail said it was co-operating with police and suspended trading. "Coinrail said the balance 70 percent of virtual coins are now secure in its cold wallet, which operates on platforms not directly connected to the internet". The company wasn't immediately available for further comments.

The price plunges were also linked to a report on Friday from the Wall Street Journal (paywall) that USA regulators are investigating four major crypto exchanges, including Coinbase and Bitstamp, for price manipulation.

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