Crypto hacks continue
Cryptocurrency rates fell as South Korean crypto exchange firm Bithumb gets hacked on Wednesday – the second firm in a month to be breached.
Bithumb reported on Wednesday that hackers stole roughly 35 won ($32 million) in cryptocurrencies, with the majority being Ripple. After the breach, the company froze all cryptocurrency deposits and withdrawals to better investigate the source of the hack. Additionally, Bithumb announced that it will compensate all victims of the hack and move all assets to a more secure offline account.
After the announcement of the security breach, Bitcoin’s value dropped 2%, bringing its overall 2018 nosedive to 54%. Other cryptocurrencies like Ripple, Litecoin, and Ethereum also fell in value.
Amidst the news of the hack, South Korean regulation policymakers are discussing the elevation of regulation for cryptocurrencies. That may mean shutting down local exchanges or simply increasing supervision of them.
South Korean crypto exchanges are some of the biggest in the world, so government regulation of them could spark more regulation in countries like the US. Some firms, like Coinbase, are anticipating the inevitable future and taking the steps to become a legitimate regulated company.
Without regulation, hackers will continue to exploit crypto firms. Investors may not worry about this, as they’ve grown accustomed to the risks of trading such a volatile and relatively new asset. However, they may want to push for regulation if they hope to see increased returns on their investments and an overall boom in the crypto industry.
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