Bithumb and Conrail crypto exchanges in South Korea lost millions of dollars to hacks, just within two weeks. In response to the hack, the Korean government has formally launched an investigation into the cause of the hacks.
The government made this announcement on Wednesday, June 20, that it has formally launched an investigation into the cause of the alleged security breaches at two crypto exchanges, Bithumb and Coinrail.
Bithumb is the country’s second-largest crypto exchange by volume, behind only the Kakao Corp-backed Upbit, according to Coinmarketcap. Coinrail is the country’s.
The government’s notice states: “The Ministry of Science and Information and Communication Technology (hereinafter referred to as ‘Science and Technology Ministry’) and the Korea Internet & Security Agency (KISA) said that they are investigating the cause of the accident caused by the virtual currency leak that occurred in Coinrail and Bithumb.”
On June 10, Conrail announced that it was hacked with an estimated loss of approximately $40 million. Just 10 days later, on June 19, Bithumb revealed that approximately $31 million worth of its cryptocurrencies was stolen. But so far, the Korean government has not confirmed that the two exchanges were hacked.
The authorities will also perform security checks on all crypto exchanges’ systems.