Bithumb Hacking - Revision history

Azoundria at 22:21, 29 November 2023

2023-11-29T22:21:00Z

← Older revision		Revision as of 16:21, 29 November 2023
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	{{Unattributed Sources}}		{{Unattributed Sources}}

	Hot wallets are not secure. All it takes is one exploit in the “security systems” to enable a hacker to steal funds. We are only as secure as the weakest link, no matter how large the exchange or how large the team. In fact, a larger team means higher probability that one person will mess up, which is all it takes - one person messes up and someone else doesn’t notice. Therefore, an exchange cannot depend on hot wallets staying secure, and the reason that customers didn’t lose their funds in this case was because the exchange covered it from cold wallet balances and past revenues.		[[File:Bithumb.jpg\|thumb\|Bithumb]]Hot wallets are not secure. All it takes is one exploit in the “security systems” to enable a hacker to steal funds. We are only as secure as the weakest link, no matter how large the exchange or how large the team. In fact, a larger team means higher probability that one person will mess up, which is all it takes - one person messes up and someone else doesn’t notice. Therefore, an exchange cannot depend on hot wallets staying secure, and the reason that customers didn’t lose their funds in this case was because the exchange covered it from cold wallet balances and past revenues.

	This exchange or platform is based in South Korea, or the incident targeted people primarily in South Korea.<ref name="thecoinrepublic-5" /><ref name="bitcoinmagazine-6" /><ref name="ciphertrace-90" /><ref name="ciphertrace-99" /><ref name="cointelegraph-107" /><ref name="cointelegraph-108" /><ref name="techcrunch-109" /><ref name="cnbc-110" /><ref name="bbc-111" /><ref name="newsbtc-112" /><ref name="newsdotbitcoin-160" /><ref name="blockexplorer-162" /><ref name="fintechnews-164" /><ref name="cointelegraph-197" /><ref name="slowmisthacked-1160" /><ref name="youniversitytv-7677" />		This exchange or platform is based in South Korea, or the incident targeted people primarily in South Korea.<ref name="thecoinrepublic-5" /><ref name="bitcoinmagazine-6" /><ref name="ciphertrace-90" /><ref name="ciphertrace-99" /><ref name="cointelegraph-107" /><ref name="cointelegraph-108" /><ref name="techcrunch-109" /><ref name="cnbc-110" /><ref name="bbc-111" /><ref name="newsbtc-112" /><ref name="newsdotbitcoin-160" /><ref name="blockexplorer-162" /><ref name="fintechnews-164" /><ref name="cointelegraph-197" /><ref name="slowmisthacked-1160" /><ref name="youniversitytv-7677" /><ref name="carnegieendowment-9983" />

	== About Bithumb ==		== About Bithumb ==
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	<ref name="slowmisthacked-1160">[https://hacked.slowmist.io/en/?c=Exchange SlowMist Hacked - SlowMist Zone] (Jun 26, 2021)</ref>		<ref name="slowmisthacked-1160">[https://hacked.slowmist.io/en/?c=Exchange SlowMist Hacked - SlowMist Zone] (Jun 26, 2021)</ref>

	<ref name="youniversitytv-7677">[https://www.youniversitytv.com/crypto-blockchain/korean-self-regulatory-crypto-industry-body-under-question-after-12-crypto-exchanges-approved/ Korean Self-regulatory Crypto Industry Body Under Question After 12 Crypto Exchanges Approved \| YOUniversityTV] (May 8, 2022)</ref></references>		<ref name="youniversitytv-7677">[https://www.youniversitytv.com/crypto-blockchain/korean-self-regulatory-crypto-industry-body-under-question-after-12-crypto-exchanges-approved/ Korean Self-regulatory Crypto Industry Body Under Question After 12 Crypto Exchanges Approved \| YOUniversityTV] (May 8, 2022)</ref>

			<ref name="carnegieendowment-9983">[https://carnegieendowment.org/specialprojects/protectingfinancialstability/timeline Timeline of Cyber Incidents Involving Financial Institutions - Carnegie Endowment for International Peace] (Dec 12, 2022)</ref></references>

Azoundria at 18:51, 1 May 2023

2023-05-01T18:51:54Z

← Older revision		Revision as of 12:51, 1 May 2023
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	{{Imported Case Study\|source=https://www.quadrigainitiative.com/casestudy/bithumbhacking.php}}		{{Imported Case Study 2\|source=https://www.quadrigainitiative.com/casestudy/bithumbhacking.php}}
	{{Unattributed ~~Citations~~}}		{{Unattributed Sources}}

	Hot wallets are not secure. All it takes is one exploit in the “security systems” to enable a hacker to steal funds. We are only as secure as the weakest link, no matter how large the exchange or how large the team. In fact, a larger team means higher probability that one person will mess up, which is all it takes - one person messes up and someone else doesn’t notice. Therefore, an exchange cannot depend on hot wallets staying secure, and the reason that customers didn’t lose their funds in this case was because the exchange covered it from cold wallet balances and past revenues.		Hot wallets are not secure. All it takes is one exploit in the “security systems” to enable a hacker to steal funds. We are only as secure as the weakest link, no matter how large the exchange or how large the team. In fact, a larger team means higher probability that one person will mess up, which is all it takes - one person messes up and someone else doesn’t notice. Therefore, an exchange cannot depend on hot wallets staying secure, and the reason that customers didn’t lose their funds in this case was because the exchange covered it from cold wallet balances and past revenues.

	This exchange or platform is based in South Korea, or the incident targeted people primarily in South Korea.		This exchange or platform is based in South Korea, or the incident targeted people primarily in South Korea.<ref name="thecoinrepublic-5" /><ref name="bitcoinmagazine-6" /><ref name="ciphertrace-90" /><ref name="ciphertrace-99" /><ref name="cointelegraph-107" /><ref name="cointelegraph-108" /><ref name="techcrunch-109" /><ref name="cnbc-110" /><ref name="bbc-111" /><ref name="newsbtc-112" /><ref name="newsdotbitcoin-160" /><ref name="blockexplorer-162" /><ref name="fintechnews-164" /><ref name="cointelegraph-197" /><ref name="slowmisthacked-1160" /><ref name="youniversitytv-7677" />
	<ref name="thecoinrepublic-5" /><ref name="bitcoinmagazine-6" /><ref name="ciphertrace-90" /><ref name="ciphertrace-99" /><ref name="cointelegraph-107" /><ref name="cointelegraph-108" /><ref name="techcrunch-109" /><ref name="cnbc-110" /><ref name="bbc-111" /><ref name="newsbtc-112" /><ref name="newsdotbitcoin-160" /><ref name="blockexplorer-162" /><ref name="fintechnews-164" /><ref name="cointelegraph-197" /><ref name="slowmisthacked-1160" /><ref name="youniversitytv-7677" />

	== About Bithumb ==		== About Bithumb ==
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	!Description		!Description
	\|-		\|-
	\|June 1st, 2018 12:01:03 AM		\|June 1st, 2018 12:01:03 AM MDT
	\|Main Event		\|Main Event
	\|Expand this into a brief description of what happened and the impact. If multiple lines are necessary, add them here.		\|Expand this into a brief description of what happened and the impact. If multiple lines are necessary, add them here.
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	\|		\|
	\|}		\|}

			== Technical Details ==
			This section includes specific detailed technical analysis of any security breaches which happened. What specific software vulnerabilities contributed to the problem and how were they exploited?

	== Total Amount Lost ==		== Total Amount Lost ==
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	== Ongoing Developments ==		== Ongoing Developments ==
	What parts of this case are still remaining to be concluded?		What parts of this case are still remaining to be concluded?
			== General Prevention Policies ==
			Coming soon.
			== Individual Prevention Policies ==
			{{Prevention:Individuals:Placeholder}}

			{{Prevention:Individuals:End}}

			== Platform Prevention Policies ==
			{{Prevention:Platforms:Placeholder}}

			{{Prevention:Platforms:End}}

			== Regulatory Prevention Policies ==
			{{Prevention:Regulators:Placeholder}}

	== Prevention ~~Policies ==~~		{{Prevention:Regulators:End}}
	~~Coming soon.~~

	== References ==		== References ==
	<references><ref name="thecoinrepublic-5">[https://www.thecoinrepublic.com/2020/01/21/south-korean-government-under-fire-as-3-more-crypto-platforms-hacked/ South Korean Government Under Fire As 3 More Crypto Platforms Hacked - The Coin Republic: Cryptocurrency , Bitcoin, Ethereum & Blockchain News] (Jan 30, 2020)</ref>		<references><ref name="thecoinrepublic-5">[https://www.thecoinrepublic.com/2020/01/21/south-korean-government-under-fire-as-3-more-crypto-platforms-hacked/ South Korean Government Under Fire As 3 More Crypto Platforms Hacked - The Coin Republic: Cryptocurrency , Bitcoin, Ethereum & Blockchain News] (Jan 31, 2020)</ref>

	<ref name="bitcoinmagazine-6">[https://bitcoinmagazine.com/articles/infographic-overview-compromised-bitcoin-exchange-events Infographic: An Overview of Compromised Bitcoin Exchange Events] (Jan 29, 2020)</ref>		<ref name="bitcoinmagazine-6">[https://bitcoinmagazine.com/articles/infographic-overview-compromised-bitcoin-exchange-events Infographic: An Overview of Compromised Bitcoin Exchange Events] (Jan 30, 2020)</ref>

	<ref name="ciphertrace-90">[https://ciphertrace.com/q3-2018-cryptocurrency-anti-money-laundering-report/ Q3 2018 Cryptocurrency Anti-Money Laundering Report - CipherTrace] (Feb 14, 2020)</ref>		<ref name="ciphertrace-90">[https://ciphertrace.com/q3-2018-cryptocurrency-anti-money-laundering-report/ Q3 2018 Cryptocurrency Anti-Money Laundering Report - CipherTrace] (Feb 15, 2020)</ref>

	<ref name="ciphertrace-99">[https://ciphertrace.com/articles/q1-2019-cryptocurrency-anti-money-laundering-report/ Q1 2019 Cryptocurrency Anti-Money Laundering Report - CipherTrace] (Feb 19, 2020)</ref>		<ref name="ciphertrace-99">[https://ciphertrace.com/articles/q1-2019-cryptocurrency-anti-money-laundering-report/ Q1 2019 Cryptocurrency Anti-Money Laundering Report - CipherTrace] (Feb 20, 2020)</ref>

	<ref name="cointelegraph-107">[https://cointelegraph.com/news/from-coincheck-to-bithumb-2018-s-largest-security-breaches-so-far From Coincheck to Bithumb: 2018’s Largest Security Breaches So Far] (Feb 22, 2020)</ref>		<ref name="cointelegraph-107">[https://cointelegraph.com/news/from-coincheck-to-bithumb-2018-s-largest-security-breaches-so-far From Coincheck to Bithumb: 2018’s Largest Security Breaches So Far] (Feb 23, 2020)</ref>

	<ref name="cointelegraph-108">[https://cointelegraph.com/news/world-s-sixth-largest-crypto-exchange-by-trade-volume-bithumb-hacked World’s Sixth Largest Crypto Exchange Bithumb Hacked, Loses $30 Mln] (Feb 22, 2020)</ref>		<ref name="cointelegraph-108">[https://cointelegraph.com/news/world-s-sixth-largest-crypto-exchange-by-trade-volume-bithumb-hacked World’s Sixth Largest Crypto Exchange Bithumb Hacked, Loses $30 Mln] (Feb 23, 2020)</ref>

	<ref name="techcrunch-109">[https://techcrunch.com/2018/06/19/korean-crypto-exchange-bithumb-says-it-lost-over-30m-following-a-hack/ Korean crypto exchange Bithumb says it lost over $30M following a hack – TechCrunch] (Feb 22, 2020)</ref>		<ref name="techcrunch-109">[https://techcrunch.com/2018/06/19/korean-crypto-exchange-bithumb-says-it-lost-over-30m-following-a-hack/ Korean crypto exchange Bithumb says it lost over $30M following a hack – TechCrunch] (Feb 23, 2020)</ref>

	<ref name="cnbc-110">[https://www.cnbc.com/2018/06/19/south-korea-crypto-exchange-bithumb-says-it-was-hacked-coins-stolen.html South Korean cryptocurrency exchange Bithumb says it was hacked and $30 million in coins was stolen] (Feb 22, 2020)</ref>		<ref name="cnbc-110">[https://www.cnbc.com/2018/06/19/south-korea-crypto-exchange-bithumb-says-it-was-hacked-coins-stolen.html South Korean cryptocurrency exchange Bithumb says it was hacked and $30 million in coins was stolen] (Feb 23, 2020)</ref>

	<ref name="bbc-111">[https://www.bbc.com/news/technology-44547250 Bithumb: Hackers 'rob crypto-exchange of $32m' - BBC News] (Feb 22, 2020)</ref>		<ref name="bbc-111">[https://www.bbc.com/news/technology-44547250 Bithumb: Hackers 'rob crypto-exchange of $32m' - BBC News] (Feb 23, 2020)</ref>

	<ref name="newsbtc-112">[https://www.newsbtc.com/2018/06/20/breaking-news-bithumb-hacked-for-30-million-in-cryptocurrencies-market-drops/ Breaking News: Bithumb Hacked For $30 Million In Cryptocurrencies, Market Drops \| NewsBTC] (Feb 22, 2020)</ref>		<ref name="newsbtc-112">[https://www.newsbtc.com/2018/06/20/breaking-news-bithumb-hacked-for-30-million-in-cryptocurrencies-market-drops/ Breaking News: Bithumb Hacked For $30 Million In Cryptocurrencies, Market Drops \| NewsBTC] (Feb 23, 2020)</ref>

	<ref name="newsdotbitcoin-160">[https://news.bitcoin.com/crypto-exchanges-wallets-hacked-korea/ Total of 7 Crypto Exchanges and 158 Wallets Hacked in South Korea, Police Find \| Security Bitcoin News] (Feb 25, 2020)</ref>		<ref name="newsdotbitcoin-160">[https://news.bitcoin.com/crypto-exchanges-wallets-hacked-korea/ Total of 7 Crypto Exchanges and 158 Wallets Hacked in South Korea, Police Find \| Security Bitcoin News] (Feb 26, 2020)</ref>

	<ref name="blockexplorer-162">[https://blockexplorer.com/news/biggest-cryptocurrency-hacks-2018/ The Biggest Cryptocurrency Hacks of 2018 (A Year in Which $1 Billion Crypto Was Stolen)] (Feb 25, 2020)</ref>		<ref name="blockexplorer-162">[https://blockexplorer.com/news/biggest-cryptocurrency-hacks-2018/ The Biggest Cryptocurrency Hacks of 2018 (A Year in Which $1 Billion Crypto Was Stolen)] (Feb 26, 2020)</ref>

	<ref name="fintechnews-164">[https://fintechnews.sg/23594/blockchain/cryptocurrency-hack-binance/ A Look Back on Some of the Most Devastating Crypto Hacks \| Fintech Singapore] (Feb 26, 2020)</ref>		<ref name="fintechnews-164">[https://fintechnews.sg/23594/blockchain/cryptocurrency-hack-binance/ A Look Back on Some of the Most Devastating Crypto Hacks \| Fintech Singapore] (Feb 27, 2020)</ref>

	<ref name="cointelegraph-197">[https://cointelegraph.com/news/crypto-exchange-hacks-in-review-proactive-steps-and-expert-advice Crypto Exchange Hacks in Review: Proactive Steps and Expert Advice] (Mar 1, 2020)</ref>		<ref name="cointelegraph-197">[https://cointelegraph.com/news/crypto-exchange-hacks-in-review-proactive-steps-and-expert-advice Crypto Exchange Hacks in Review: Proactive Steps and Expert Advice] (Mar 2, 2020)</ref>

	<ref name="slowmisthacked-1160">[https://hacked.slowmist.io/en/?c=Exchange SlowMist Hacked - SlowMist Zone] (Jun 25, 2021)</ref>		<ref name="slowmisthacked-1160">[https://hacked.slowmist.io/en/?c=Exchange SlowMist Hacked - SlowMist Zone] (Jun 26, 2021)</ref>

	<ref name="youniversitytv-7677">[https://www.youniversitytv.com/crypto-blockchain/korean-self-regulatory-crypto-industry-body-under-question-after-12-crypto-exchanges-approved/ Korean Self-regulatory Crypto Industry Body Under Question After 12 Crypto Exchanges Approved \| YOUniversityTV] (May 8, 2022)</ref></references>		<ref name="youniversitytv-7677">[https://www.youniversitytv.com/crypto-blockchain/korean-self-regulatory-crypto-industry-body-under-question-after-12-crypto-exchanges-approved/ Korean Self-regulatory Crypto Industry Body Under Question After 12 Crypto Exchanges Approved \| YOUniversityTV] (May 8, 2022)</ref></references>

Azoundria at 05:53, 17 February 2023

2023-02-17T05:53:52Z

← Older revision		Revision as of 23:53, 16 February 2023
Line 1:		Line 1:
	{{Imported Case Study\|source=https://www.quadrigainitiative.com/casestudy/bithumbhacking.php}}		{{Imported Case Study\|source=https://www.quadrigainitiative.com/casestudy/bithumbhacking.php}}
			{{Unattributed Citations}}

	Hot wallets are not secure. All it takes is one exploit in the “security systems” to enable a hacker to steal funds. We are only as secure as the weakest link, no matter how large the exchange or how large the team. In fact, a larger team means higher probability that one person will mess up, which is all it takes - one person messes up and someone else doesn’t notice. Therefore, an exchange cannot depend on hot wallets staying secure, and the reason that customers didn’t lose their funds in this case was because the exchange covered it from cold wallet balances and past revenues.		Hot wallets are not secure. All it takes is one exploit in the “security systems” to enable a hacker to steal funds. We are only as secure as the weakest link, no matter how large the exchange or how large the team. In fact, a larger team means higher probability that one person will mess up, which is all it takes - one person messes up and someone else doesn’t notice. Therefore, an exchange cannot depend on hot wallets staying secure, and the reason that customers didn’t lose their funds in this case was because the exchange covered it from cold wallet balances and past revenues.

	This exchange or platform is based in South Korea, or the incident targeted people primarily in South Korea.		This exchange or platform is based in South Korea, or the incident targeted people primarily in South Korea.
			<ref name="thecoinrepublic-5" /><ref name="bitcoinmagazine-6" /><ref name="ciphertrace-90" /><ref name="ciphertrace-99" /><ref name="cointelegraph-107" /><ref name="cointelegraph-108" /><ref name="techcrunch-109" /><ref name="cnbc-110" /><ref name="bbc-111" /><ref name="newsbtc-112" /><ref name="newsdotbitcoin-160" /><ref name="blockexplorer-162" /><ref name="fintechnews-164" /><ref name="cointelegraph-197" /><ref name="slowmisthacked-1160" /><ref name="youniversitytv-7677" />

	== About Bithumb ==		== About Bithumb ==
Line 23:		Line 25:

	Don't Include:		Don't Include:

	* Any wording which directly states or implies that the business is/was illegitimate, or that a vulnerability existed.		* Any wording which directly states or implies that the business is/was illegitimate, or that a vulnerability existed.
	* Anything that wasn't reasonably knowable at the time of the event.		* Anything that wasn't reasonably knowable at the time of the event.
Line 45:		Line 46:
	\|-		\|-
	\|June 1st, 2018 12:01:03 AM		\|June 1st, 2018 12:01:03 AM
	\|~~First~~ Event		\|Main Event
	\|~~This is an expanded~~ description of what happened and the impact. If multiple lines are necessary, add them here.		\|Expand this into a brief description of what happened and the impact. If multiple lines are necessary, add them here.
	\|-
	\|
	\|
	\|
	\|-		\|-
	\|		\|
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	== Total Amount Lost ==		== Total Amount Lost ==
	The total amount lost ~~is unknown~~.		The total amount lost has been estimated at $32,000,000 USD.

	How much was lost and how was it calculated? If there are conflicting reports, which are accurate and where does the discrepancy lie?		How much was lost and how was it calculated? If there are conflicting reports, which are accurate and where does the discrepancy lie?
Line 69:		Line 66:

	== Total Amount Recovered ==		== Total Amount Recovered ==
	~~It is unknown how much was~~ recovered.		There do not appear to have been any funds recovered in this case.

	What funds were recovered? What funds were reimbursed for those affected users?		What funds were recovered? What funds were reimbursed for those affected users?
Line 80:		Line 77:

	== References ==		== References ==
	[https://www.thecoinrepublic.com/2020/01/21/south-korean-government-under-fire-as-3-more-crypto-platforms-hacked/ South Korean Government Under Fire As 3 More Crypto Platforms Hacked - The Coin Republic: Cryptocurrency , Bitcoin, Ethereum & Blockchain News] (Jan 30)		<references><ref name="thecoinrepublic-5">[https://www.thecoinrepublic.com/2020/01/21/south-korean-government-under-fire-as-3-more-crypto-platforms-hacked/ South Korean Government Under Fire As 3 More Crypto Platforms Hacked - The Coin Republic: Cryptocurrency , Bitcoin, Ethereum & Blockchain News] (Jan 30, 2020)</ref>

	[https://bitcoinmagazine.com/articles/infographic-overview-compromised-bitcoin-exchange-events Infographic: An Overview of Compromised Bitcoin Exchange Events] (Jan 29)		<ref name="bitcoinmagazine-6">[https://bitcoinmagazine.com/articles/infographic-overview-compromised-bitcoin-exchange-events Infographic: An Overview of Compromised Bitcoin Exchange Events] (Jan 29, 2020)</ref>

	[https://ciphertrace.com/q3-2018-cryptocurrency-anti-money-laundering-report/ Q3 2018 Cryptocurrency Anti-Money Laundering Report - CipherTrace] (Feb 14)		<ref name="ciphertrace-90">[https://ciphertrace.com/q3-2018-cryptocurrency-anti-money-laundering-report/ Q3 2018 Cryptocurrency Anti-Money Laundering Report - CipherTrace] (Feb 14, 2020)</ref>

	[https://ciphertrace.com/articles/q1-2019-cryptocurrency-anti-money-laundering-report/ Q1 2019 Cryptocurrency Anti-Money Laundering Report - CipherTrace] (Feb 19)		<ref name="ciphertrace-99">[https://ciphertrace.com/articles/q1-2019-cryptocurrency-anti-money-laundering-report/ Q1 2019 Cryptocurrency Anti-Money Laundering Report - CipherTrace] (Feb 19, 2020)</ref>

	[https://cointelegraph.com/news/from-coincheck-to-bithumb-2018-s-largest-security-breaches-so-far From Coincheck to Bithumb: 2018’s Largest Security Breaches So Far] (Feb 22)		<ref name="cointelegraph-107">[https://cointelegraph.com/news/from-coincheck-to-bithumb-2018-s-largest-security-breaches-so-far From Coincheck to Bithumb: 2018’s Largest Security Breaches So Far] (Feb 22, 2020)</ref>

	[https://cointelegraph.com/news/world-s-sixth-largest-crypto-exchange-by-trade-volume-bithumb-hacked World’s Sixth Largest Crypto Exchange Bithumb Hacked, Loses $30 Mln] (Feb 22)		<ref name="cointelegraph-108">[https://cointelegraph.com/news/world-s-sixth-largest-crypto-exchange-by-trade-volume-bithumb-hacked World’s Sixth Largest Crypto Exchange Bithumb Hacked, Loses $30 Mln] (Feb 22, 2020)</ref>

	[https://techcrunch.com/2018/06/19/korean-crypto-exchange-bithumb-says-it-lost-over-30m-following-a-hack/ Korean crypto exchange Bithumb says it lost over $30M following a hack – TechCrunch] (Feb 22)		<ref name="techcrunch-109">[https://techcrunch.com/2018/06/19/korean-crypto-exchange-bithumb-says-it-lost-over-30m-following-a-hack/ Korean crypto exchange Bithumb says it lost over $30M following a hack – TechCrunch] (Feb 22, 2020)</ref>

	[https://www.cnbc.com/2018/06/19/south-korea-crypto-exchange-bithumb-says-it-was-hacked-coins-stolen.html South Korean cryptocurrency exchange Bithumb says it was hacked and $30 million in coins was stolen] (Feb 22)		<ref name="cnbc-110">[https://www.cnbc.com/2018/06/19/south-korea-crypto-exchange-bithumb-says-it-was-hacked-coins-stolen.html South Korean cryptocurrency exchange Bithumb says it was hacked and $30 million in coins was stolen] (Feb 22, 2020)</ref>

	[https://www.bbc.com/news/technology-44547250 Bithumb: Hackers 'rob crypto-exchange of $32m' - BBC News] (Feb 22)		<ref name="bbc-111">[https://www.bbc.com/news/technology-44547250 Bithumb: Hackers 'rob crypto-exchange of $32m' - BBC News] (Feb 22, 2020)</ref>

	[https://www.newsbtc.com/2018/06/20/breaking-news-bithumb-hacked-for-30-million-in-cryptocurrencies-market-drops/ Breaking News: Bithumb Hacked For $30 Million In Cryptocurrencies, Market Drops \| NewsBTC] (Feb 22)		<ref name="newsbtc-112">[https://www.newsbtc.com/2018/06/20/breaking-news-bithumb-hacked-for-30-million-in-cryptocurrencies-market-drops/ Breaking News: Bithumb Hacked For $30 Million In Cryptocurrencies, Market Drops \| NewsBTC] (Feb 22, 2020)</ref>

	[https://news.bitcoin.com/crypto-exchanges-wallets-hacked-korea/ Total of 7 Crypto Exchanges and 158 Wallets Hacked in South Korea, Police Find \| Security Bitcoin News] (Feb 25)		<ref name="newsdotbitcoin-160">[https://news.bitcoin.com/crypto-exchanges-wallets-hacked-korea/ Total of 7 Crypto Exchanges and 158 Wallets Hacked in South Korea, Police Find \| Security Bitcoin News] (Feb 25, 2020)</ref>

	[https://blockexplorer.com/news/biggest-cryptocurrency-hacks-2018/ The Biggest Cryptocurrency Hacks of 2018 (A Year in Which $1 Billion Crypto Was Stolen)] (Feb 25)		<ref name="blockexplorer-162">[https://blockexplorer.com/news/biggest-cryptocurrency-hacks-2018/ The Biggest Cryptocurrency Hacks of 2018 (A Year in Which $1 Billion Crypto Was Stolen)] (Feb 25, 2020)</ref>

	[https://fintechnews.sg/23594/blockchain/cryptocurrency-hack-binance/ A Look Back on Some of the Most Devastating Crypto Hacks \| Fintech Singapore] (Feb 26)		<ref name="fintechnews-164">[https://fintechnews.sg/23594/blockchain/cryptocurrency-hack-binance/ A Look Back on Some of the Most Devastating Crypto Hacks \| Fintech Singapore] (Feb 26, 2020)</ref>

	[https://cointelegraph.com/news/crypto-exchange-hacks-in-review-proactive-steps-and-expert-advice Crypto Exchange Hacks in Review: Proactive Steps and Expert Advice] (Mar 1)		<ref name="cointelegraph-197">[https://cointelegraph.com/news/crypto-exchange-hacks-in-review-proactive-steps-and-expert-advice Crypto Exchange Hacks in Review: Proactive Steps and Expert Advice] (Mar 1, 2020)</ref>

	[https://hacked.slowmist.io/en/?c=Exchange SlowMist Hacked - SlowMist Zone] (Jun 25)		<ref name="slowmisthacked-1160">[https://hacked.slowmist.io/en/?c=Exchange SlowMist Hacked - SlowMist Zone] (Jun 25, 2021)</ref>

	[https://www.youniversitytv.com/crypto-blockchain/korean-self-regulatory-crypto-industry-body-under-question-after-12-crypto-exchanges-approved/ Korean Self-regulatory Crypto Industry Body Under Question After 12 Crypto Exchanges Approved \| YOUniversityTV] (May 8)		<ref name="youniversitytv-7677">[https://www.youniversitytv.com/crypto-blockchain/korean-self-regulatory-crypto-industry-body-under-question-after-12-crypto-exchanges-approved/ Korean Self-regulatory Crypto Industry Body Under Question After 12 Crypto Exchanges Approved \| YOUniversityTV] (May 8, 2022)</ref></references>

Azoundria: Created page with "{{Imported Case Study|source=https://www.quadrigainitiative.com/casestudy/bithumbhacking.php}} Hot wallets are not secure. All it takes is one exploit in the “security systems” to enable a hacker to steal funds. We are only as secure as the weakest link, no matter how large the exchange or how large the team. In fact, a larger team means higher probability that one person will mess up, which is all it takes - one person messes up and someone else doesn’t notice. T..."

2023-01-24T21:25:52Z

Created page with "{{Imported Case Study|source=https://www.quadrigainitiative.com/casestudy/bithumbhacking.php}} Hot wallets are not secure. All it takes is one exploit in the “security systems” to enable a hacker to steal funds. We are only as secure as the weakest link, no matter how large the exchange or how large the team. In fact, a larger team means higher probability that one person will mess up, which is all it takes - one person messes up and someone else doesn’t notice. T..."

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{{Imported Case Study|source=https://www.quadrigainitiative.com/casestudy/bithumbhacking.php}}

Hot wallets are not secure. All it takes is one exploit in the “security systems” to enable a hacker to steal funds. We are only as secure as the weakest link, no matter how large the exchange or how large the team. In fact, a larger team means higher probability that one person will mess up, which is all it takes - one person messes up and someone else doesn’t notice. Therefore, an exchange cannot depend on hot wallets staying secure, and the reason that customers didn’t lose their funds in this case was because the exchange covered it from cold wallet balances and past revenues.

This exchange or platform is based in South Korea, or the incident targeted people primarily in South Korea.

== About Bithumb ==
“On June 19, Bithumb, South Korea’s number one crypto exchange, was hacked. The attackers stole cryptocurrencies worth $30 million, making it one of the largest heists of the year so far. While the exchange has already promised to compensate its users, the damage has been done: yet again, it has become evident that even the biggest players cannot guarantee total safety. “ “The successful hack of Bithumb occurred shortly after the exchange updated its security systems following an earlier hack in 2017.” “Although a change in the wallet system may be a security improvement for some exchanges, it ended up backfiring, resulting in an unexpected cryptocurrency hack.” “Bithumb stated that their wallet system was undergoing “a total change” in order to prevent further attacks and claimed that there will be “no damage” to its customers as a consequence of the theft.” “The investigation of the event was held by South Korea’s National Police Agency and its cybersecurity division. However, at the moment of writing, no definite suspects were found.”

This exchange or platform is based in South Korea, or the incident targeted people primarily in South Korea.

The background of the exchange platform, service, or individuals involved, as it would have been seen or understood at the time of the events.

Include:

* Known history of when and how the service was started.
* What problems does the company or service claim to solve?
* What marketing materials were used by the firm or business?
* Audits performed, and excerpts that may have been included.
* Business registration documents shown (fake or legitimate).
* How were people recruited to participate?
* Public warnings and announcements prior to the event.

Don't Include:

* Any wording which directly states or implies that the business is/was illegitimate, or that a vulnerability existed.
* Anything that wasn't reasonably knowable at the time of the event.
There could be more than one section here. If the same platform is involved with multiple incidents, then it can be linked to a main article page.

== The Reality ==
This sections is included if a case involved deception or information that was unknown at the time. Examples include:

* When the service was actually started (if different than the "official story").
* Who actually ran a service and their own personal history.
* How the service was structured behind the scenes. (For example, there was no "trading bot".)
* Details of what audits reported and how vulnerabilities were missed during auditing.

== What Happened ==
The specific events of the loss and how it came about. What actually happened to cause the loss and some of the events leading up to it.
{| class="wikitable"
|+Key Event Timeline - Bithumb Hacking
!Date
!Event
!Description
|-
|June 1st, 2018 12:01:03 AM
|First Event
|This is an expanded description of what happened and the impact. If multiple lines are necessary, add them here.
|-
|
|
|
|-
|
|
|
|}

== Total Amount Lost ==
The total amount lost is unknown.

How much was lost and how was it calculated? If there are conflicting reports, which are accurate and where does the discrepancy lie?

== Immediate Reactions ==
How did the various parties involved (firm, platform, management, and/or affected individual(s)) deal with the events? Were services shut down? Were announcements made? Were groups formed?

== Ultimate Outcome ==
What was the end result? Was any investigation done? Were any individuals prosecuted? Was there a lawsuit? Was any tracing done?

== Total Amount Recovered ==
It is unknown how much was recovered.

What funds were recovered? What funds were reimbursed for those affected users?

== Ongoing Developments ==
What parts of this case are still remaining to be concluded?

== Prevention Policies ==
Coming soon.

== References ==
[https://www.thecoinrepublic.com/2020/01/21/south-korean-government-under-fire-as-3-more-crypto-platforms-hacked/ South Korean Government Under Fire As 3 More Crypto Platforms Hacked - The Coin Republic: Cryptocurrency , Bitcoin, Ethereum & Blockchain News] (Jan 30)

[https://bitcoinmagazine.com/articles/infographic-overview-compromised-bitcoin-exchange-events Infographic: An Overview of Compromised Bitcoin Exchange Events] (Jan 29)

[https://ciphertrace.com/q3-2018-cryptocurrency-anti-money-laundering-report/ Q3 2018 Cryptocurrency Anti-Money Laundering Report - CipherTrace] (Feb 14)

[https://ciphertrace.com/articles/q1-2019-cryptocurrency-anti-money-laundering-report/ Q1 2019 Cryptocurrency Anti-Money Laundering Report - CipherTrace] (Feb 19)

[https://cointelegraph.com/news/from-coincheck-to-bithumb-2018-s-largest-security-breaches-so-far From Coincheck to Bithumb: 2018’s Largest Security Breaches So Far] (Feb 22)

[https://cointelegraph.com/news/world-s-sixth-largest-crypto-exchange-by-trade-volume-bithumb-hacked World’s Sixth Largest Crypto Exchange Bithumb Hacked, Loses $30 Mln] (Feb 22)

[https://techcrunch.com/2018/06/19/korean-crypto-exchange-bithumb-says-it-lost-over-30m-following-a-hack/ Korean crypto exchange Bithumb says it lost over $30M following a hack – TechCrunch] (Feb 22)

[https://www.cnbc.com/2018/06/19/south-korea-crypto-exchange-bithumb-says-it-was-hacked-coins-stolen.html South Korean cryptocurrency exchange Bithumb says it was hacked and $30 million in coins was stolen] (Feb 22)

[https://www.bbc.com/news/technology-44547250 Bithumb: Hackers 'rob crypto-exchange of $32m' - BBC News] (Feb 22)

[https://www.newsbtc.com/2018/06/20/breaking-news-bithumb-hacked-for-30-million-in-cryptocurrencies-market-drops/ Breaking News: Bithumb Hacked For $30 Million In Cryptocurrencies, Market Drops | NewsBTC] (Feb 22)

[https://news.bitcoin.com/crypto-exchanges-wallets-hacked-korea/ Total of 7 Crypto Exchanges and 158 Wallets Hacked in South Korea, Police Find | Security Bitcoin News] (Feb 25)

[https://blockexplorer.com/news/biggest-cryptocurrency-hacks-2018/ The Biggest Cryptocurrency Hacks of 2018 (A Year in Which $1 Billion Crypto Was Stolen)] (Feb 25)

[https://fintechnews.sg/23594/blockchain/cryptocurrency-hack-binance/ A Look Back on Some of the Most Devastating Crypto Hacks | Fintech Singapore] (Feb 26)

[https://cointelegraph.com/news/crypto-exchange-hacks-in-review-proactive-steps-and-expert-advice Crypto Exchange Hacks in Review: Proactive Steps and Expert Advice] (Mar 1)

[https://hacked.slowmist.io/en/?c=Exchange SlowMist Hacked - SlowMist Zone] (Jun 25)

[https://www.youniversitytv.com/crypto-blockchain/korean-self-regulatory-crypto-industry-body-under-question-after-12-crypto-exchanges-approved/ Korean Self-regulatory Crypto Industry Body Under Question After 12 Crypto Exchanges Approved | YOUniversityTV] (May 8)