South Korean cryptocurrency exchange Coinrail said it was the victim of a hack on Sunday, with reported losses of about 40 billion won ($37.2 million) in cryptocurrency, following a “cyber intrusion” in its systems.
Data from Coinmarketcap indicates that Coinrail was the world’s 90th largest crypto trading platform on Sunday. Coinrail contends that 70% of its total coin reserves have been moved to an offline cold wallet and remain safe. “The remaining one-third of coins are being investigated with investigators, relevant exchanges and coin developers,” they added. Coinrail is not a member of the Korea Blockchain Industry Associationgroup but a minor player in the market. However the unexpected incident influenced the cryptocurrency market. That news has sent shockwaves because of media coverage.
On Sunday Bitcoin fell significantly more than 10 percent to its lowest in two months after news of the Coinrail hack broke. Other commonly traded digital currencies like Ethereum have also taken a dive. In fact, and as an explanation of what happened Sunday, cryptocurrency exchanges are ideal targets for attackers. It’s about small companies with a lot of money but with small security. A better solution for cryptocurrency investors should be to not keep the money in an online exchange. South Korea is one of the biggest markets for trading in digital currencies.