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Hacker attack on cyber exchange Coinrail

2018-06-11

A new hacker attack on a cryptocurrency trading platform unsettled investors on Monday.The course of Bitcoin temporarily dropped by 13 percent to a two-month low of $ 6650. At the beginning of the year, a bitcoin had cost $ 10,000 more.

The South Korean crypto exchange Coinrail admitted that hackers stole around 30 percent of the traded digital coins on Sunday. One volume was not named by the platform operator. In media reports, the value of lost coins was estimated at 40 billion Won (the equivalent of about 31 million euros). South Korea is a stronghold in the hitherto largely unregulated crypto currency trade.

Now the hacked exchange Coinrail is a small provider and is, according to industry sources, not a member of the group of 14 South Korean trading platforms that have committed themselves to self-regulation.

This makes it clear again how vulnerable small stock market operators are with lower security standards for hacker attacks.

The remaining 70 percent of the coin and token reserves are to be secured and transferred to so-called cold wallets that are not connected to the Internet. Two thirds of the stolen crypto field were withdrawn or frozen in partnership with other file sharing networks.

Stole ICO tokens

Most of the tokens stolen were issued by Aston (ATX), NPER (NPER) and Pundi X (NPXS) as initial coin offerings and are traded on Coinbase.

Most affected is the ICO checkout project Pundi X since NPXS token worth about 17.5 million euros were stolen, which accounts for just 3 percent of the total claims to be

According to Techcrunch, the suspected hacker's wallet address indicates that tokens could also be stolen from seven other ICOs - including Dent, as well as a Chinese project called Tron. Aston, NPER, and Pundi X responded, according to their own information, with a freeze on the affected tokens, which should be useful in cooperation with the Korean police to clarify the hacker attack. According to Coinrail, as already reported, two-thirds of the stolen money has already been frozen. It is questionable whether Coinrail plans to compensate the affected users.

Sell-off as a result

Perhaps as a result of the hacker attack, the prices of several crypto currencies collapsed on Monday morning, with a loss of $ 46 billion. Currently, the bitcoin price is around 5,800 euros (as at 11.06.2018, 14:15 clock) and has therefore fallen more than 50 percent since the beginning of the year. But the prices for Ethereum (-9.14%) and Ripple (-9.34%) have also dropped significantly. Coinrail himself, however, does not see the connection as inevitable.