Bithumb Bounces Back After $30 Million Security Breach: Reopens Deposits And Withdrawals

Cryptocurrency exchange Bithumb has started accepting withdrawals and deposits, for the first time, after suffering a significant security breach that resulted in the loss of over $30 million. The exchange announced it is open for business on a twitter post. However, users will have to contend with ten cryptocurrencies for deposits and withdrawals.

The cryptocurrencies that people can use for deposits and withdrawals are Bitcoin (BTC), Ethereum (ETH), Ripple (XRP), Etherum Classic (ETC), Qtum (QTUM), Litecoin (LTC), Bitcoin Cash (BCH), Monero (XMR), and Mitril (MITH).  Twenty-five other cryptocurrencies that the exchange supported before the hacking incident remain suspended, waiting to see if it will add support going forward.

For deposits, customers will have to create new deposit addresses. Any deposits that were made before the exchange suspended its services will also be credited into user’s accounts.

“Some cryptocurrencies with a significant price difference of about 10 percent between Bithumb market and the standard market will be opted out for this customer's asset. When services return to normal, rapid changes in price are expected,” Bithumb in a statement.

Bithumb is now back to business having undergone a series of inspection as part of South Korea’s authorities bid to bring sanity into the industry. The exchange is among other 12 crypto exchanges that have been given a clean bill of health to resume operations. Some exchanges remain suspended until they implement control measures that authorities believe will help protect people’s funds in the industry.

South Korea has one of the toughest regulations when it comes to crypto regulations.  Bithumb being approved to restart operations is thus a big deal given that the country is one of the biggest marketplaces for cryptocurrencies.

The hacking incident had a massive negative impact on confidence in the industry. Following the hack, Bithumb was forced to temporarily disable all cryptocurrency operations, a move that resulted in funds being moved into cold storage wallets. The firm also stopped all deposits and withdrawals from taking place.

Bithumb has already recovered $14 million worth of cryptocurrency stolen in the hacking incidence and is set to compensate affected holders through a coupon based plan.

Cyber and crypto theft remains a big challenge a move that has forced regulators around the world to tighten regulation and scrutiny in the race to protect investors.  Early in the year Coincheck also suffered a similar fate as hackers gained access into the exchange systems and walked away with cryptocurrencies worth $530 million.