Korea's Biggest Bitcoin Ethereum Exchange Bithumb Suffers 'Hack'... Sort Of (The Cryptoverse #297)steemCreated with Sketch.

in cryptocurrency •  7 years ago 

When something like this happens there can be a lot of panic the results. Today I wanted to clearly lay out what happened here, the circumstances that allowed it to happen and then give you some reassurance that these stories do not mean cryptocurrencies themselves are not secure.

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Sources:
http://coinmarketcap.com/currencies/ethereum/#markets

https://www.bithumb.com/EN/

https://www.cryptocoinsnews.com/koreas-biggest-bitcoin-ethereum-exchange-compensate-customers-hack-korean-bitcoin-exchange-bithumb-promised-compensate-users-following-data-breach-users-pers/

http://news.mk.co.kr/newsRead.php?year=2017&no=445387

http://english.yonhapnews.co.kr/national/2017/07/03/52/0302000000AEN20170703010400320F.html

http://www.coindesk.com/korean-bitcoin-exchange-to-pay-back-account-thefts/

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Thanks @marketingmonk for this simple explanation. I've been encouraging lots of my friends to start learning and investing in crypto. Some of them did but most of them just too comfortable in their own cocoon.
When "unfortunate" events like this one happened, the ignorant ones will be quick to tell me "I told you so!" after just glancing the headlines from mainstream media. To whom I replied "thanks, I'll be alright".
:)

  ·  7 years ago (edited)

Thank you @marketingmonk. Many people who are trading crypto know too little about it. This causes the market to be under the control of emotional behavior.
That is why I keep recommending long-term investment instead of trading.

I would also like to say that as long as we use centralized exchanges, such problems will occur. We must move to de-centralized exchanges like bitshares.

Nice job bro👍

Agreed

You're so right it really isn't so bad plus with every attack like this it's just another learning curve, these things also come about from human error. Bithumb also handled it very well ( I suppose of course there is damage control to be done for their clients).

  ·  7 years ago (edited)

I am from S.Korea and some foreign press and users on steemit or reddit overstate too much about it. There was no password leakage. Only email and phone number of some users were hacked. And hackers were using them as a scam to get password via phone call( acting like exchange's security staff ).. Never tell your password or OTP number to anybody.

Hello @hanho I'm very interested in your perspective and I will start following you. I think Korea/Japan control a big share of the total market and I will like to stay inform in crypto news breaking on that area. Any suggestions for a site in English?

I found this post interesting. I think you did a good job

This comment has received a 0.06 % upvote from @booster thanks to: @hamzaoui.

There's a big learning curve for cryptos and you're helping make it easier. Excellent work.

You are absolutely right, @altcointrends. To successfully invest in cryptos, you need to learn about a cutting-edge new technology. In addition, you need to learn the rules of the new economy it is creating. Finance + Technology = FinTech :)

It's a shame when this happens. This undermines the credibility of the crypto currency: (

Yes but in this case it wasn't a flaw in the technology, it was instead a flaw in human nature. If the proper security measures were taken by those 31,000 users then the amount of stolen money would of been ZERO. As an interesting sidenote, the crypto exchanges seem to be stepping up to the plate after these types of things take place, to help make the victims whole for the losses. Coinbase did it in the aftermath of the recent flash Ether crash, and Bitthumb did it in this recently scam that took place that Chris mentioned in this video. It is a good sign that most exchanges are willing to help negate some risk if a worst case situation takes place on their platform, but people should not assume this will always happen, and should put security of their crypto at the top of their list of priorities.

Please review Monero as a trading and investment currency. Thanks!