Ripple (XRP) and several cryptos fall over 5% after South Korean Exchange gets hacked
Ripple (XRP), Bitcoin Cash (BCH), Bitcoin (BTC) and several other cryptocurrencies dropped by over 5% on Sunday. The reason is being attributed to the hack at the Coinrail, the South Korean cryptocurrency exchange. The exchange announced on Sunday, June 10th that it had been hacked. Ripple has been making waves in the crypto space lately. They recently announced that xCurrent will be used by American Express, or AMEX to carry out cross border payments.
According to the announcement on the exchange’s website “70% of its total coin/total reserves were safe.”
They further added that,
“Two-thirds of the coins confirmed to have been leaked are covered by freezing/ recalling through consultation with each coach and related exchanges.”
This hack had led to the price of several cryptocurrencies including Bitcoin, Ethereum and Ripple to plummet by 5% or more. But it seems that Bitcoin is the least affected by the hack because its price fell by under 5%. At the time, Bitcoin was seen trading around $7,600. But in the space of just 30 minutes, it dropped to less than $7,300. And over the past 15 hours, it has been trading in a $100 range.
Furthermore, this drop in the prices of cryptocurrencies have ended the two weeks of comparatively low volatility in crypto prices. While Bitcoin might’ve been the least affected, the other digital currencies suffered losses in price by 5% to 11%. By ‘other’ we mean the top 9 digital currencies in the crypto market.
Ripple (XRP) was trading at $0.66 initially on June 10th, but the digital token started dipping soon after. By the end of the day, Ripple’s value had plummeted to $0.59. *Cryptocurrency prices are from Coinmarketcap.
Cryptocurrency Exchange hacks – South Korea
This is probably the third crypto exchange to be hacked in South Korea of late. South Korea’s largest cryptocurrency exchange Bithumb was hacked in July last year. At the time, Bithumb was ranked the world’s fifth largest exchange and the hacking compromised the information on 31,800 customers. Though the customer accounts couldn’t be accessed directly, the hackers could glean enough personal information. Using this they “voice phished” the additional details from customers and transferred cryptocurrencies out of their digital wallets.
A South Korean Bitcoin exchange Youbit was hacked in December last year. The attack led to a loss of 4,000 Bitcoins which was 17% of its assets worth about $48 million. A Reuters article had reported that all the customers digital assets would be marked down by 25%. However, Youbit ended up filing for bankruptcy.
Coinrail seems to be the latest victim among the South Korean cryptocurrency exchanges which were compromised. While people suspect that North Korea is behind for these incidents, as of now it’s still an unproven theory. It is alleged that North Koreans are trying to obtain cryptocurrencies and then exchange it into hard currencies.
Image via shutterstock
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