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Published: Wed, June 13, 2018
Economy | By Melissa Porter

Bitcoin's Sunday Slump Sparked by Hack

Bitcoin's Sunday Slump Sparked by Hack

Although the exact amount of damage caused by the theft is yet to be confirmed, South Korean news outlet Yonhap News has estimated it to be around 40 billion won ($37.2 million).

Bitcoin dropped more than 10 per cent over the weekend, fa1lling below $6,700, according to research site CoinDesk.

While South Korea has become a hotbed of trading in cryptocurrencies, Coinrail is among South Korea's smaller trading platforms. NY time on Friday and was trading at US$6,782.42 as of 10:30 a.m.in London on Monday, bringing its decline since December 29 to 53 per cent. Another Korean cryptocurrency exchange Youbit lost bitcoins worth around 20 billion won a year ago to cyberthieves twice, once in April and again in December. More recently, in December previous year, South Korean cryptocurrency exchange Youbit shut down and filed for bankruptcy after being hacked twice. But the hack added to existing uncertainties in the virtual currency market, and after Coinrail reported losing about 30 percent of its reserves in the attack, bitcoin's price plummeted. To prevent further hacking, the exchange has also moved the remaining 70 percent of its digital assets offline to a "cold wallet". Exchanges in South Korea have a history of being hit by cyberattacks. It wasn't immediately clear whether the lost coins were stored in the more insecure 'hot wallet'. Before the attack, Coinrail ranked near the bottom of the 100 biggest cryptocurrency exchanges in the world by trading volume, according to data from coinmarketcap.com.

The ISMS is a system that certifies protection of personal information at companies with average daily visitor of over 1 million.

"Though the CoinRail hack may have set us off-track, I don't think that this will have very significant ramifications in the long run", he said. Coinrail said it is cooperating with the police investigating the hack and said it will release an announcement with more details as soon as possible.

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