Bitcoin price drops again after yet another cryptocurrency exchange hack

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South Korea's major cryptocurrency exchange Bithumb was hacked in a cyberattack in which some $31.5 million (35 billion won) worth of cryptocurrencies were stolen.

The exchange halted cryptocurrency deposits and withdrawals, said it will compensate victims and moved investor assets to a so-called cold wallet, which is disconnected from the Internet and less vulnerable to theft.

One of the world's biggest bitcoin exchanges on Wednesday said that more than $30 million worth of cryptocurrencies have been stolen from it.

"We have noticed that between the last night and today morning, about 35,000,000,000 KRW worth cryptocurrencies have been stolen", Bithumb said.

The exact amount of the loss and information about which cryptocurrency has been damaged, is yet to be revealed by Bithumb.

Just 12 minutes after they suspended their deposit system, they announced that they were going to suspend all deposit and withdrawal services due to an over $30 million hack from wallets. The platform is the sixth-largest in the world, with an average daily trading volume of nearly $400 million, according to CoinMarketCap.

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North Korean hackers have been pegged in the past for spear-phishing attacks against cryptocurrency exchanges and illegal cryptomining, as they look to generate much needed funds for the Kim Jong-un regime.

As mentioned earlier, Bithumb was the second cryptocurrency exchange to be hacked within this month.

Following the attack, Bithumb has stored all assets in "safe cold wallets", according to Reuters. Funds are often kept in hot wallets to facilitate short-term day trading as a way to avoid having to manage multiple wallets - but the result is that digital currency left online may be at risk. IT experts blame the exchanges' lax security and say they place higher priority on speed of trading than on security.

Bitcoin (virtual currency) coins placed on Dollar banknotes are seen in this illustration picture, November 6, 2017.

Less than two weeks ago, reports emerged of another hack on a South Korean-based cryptocurrency exchange platform.

At the time of writing, one bitcoin was trading at $6,626.19 (£5,035) - representing a 1.4% drop from its level before news of the heist spread.

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