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Business & Finance

Bithumb Resumes Pre-heist Activities

Bithumb has announced that it will resume allowing deposits and withdrawals for some of the cryptocurrencies that the South Korean exchange froze following a major hack in June. In that hack, Bithumb lost the equivalent of more than $30 million. Deposits and withdrawals of the following coins will again be allowed on the exchange:

1.Bitcoin (BTC)
2.Ethereum (ETH)
3.Ripple (XRP)
4.Ethereum Classic (ETC)
5.Qtum (QTUM)
6.Litecoin (LTC)
7.Bitcoin Cash (BCH)
8.Monero (XMR)
9.Zcash (ZEC)
10.Mithrill (MITH)

In a post, Bithumb stated that it is first reopening the withdrawal and deposit services for nine altcoins, adding that it has been slightly delayed in order “to provide a more stable service environment.”

The suspension still holds for some cryptocurrencies, however, in other to protect customers from losses due to wide price fluctuations. Bithumb explained:

Some cryptocurrencies with a significant price difference of about 10% between Bithumb market and standard market will be opted out in this round in view of protecting our customer’s asset. Since when the services return to normal, rapid change in market prices are expected. Therefore, resuming normal services for such cryptocurrencies will be put on hold for the time being.

In the end of June, hackers stole around a $30 million in from Bithumb, prompting the exchange to temporarily suspend all deposits and payments.

Bithumb first announced the theft of $30 million but since then has lowered the estimate to about $17 million. In an official announcement, Bithumb stated the reason for this lowering was that they were able to quickly take custody of the cryptographic wallets of all cryptographic currencies, collaborating with the Cryptographic Fund and the Worldwide Cryptographic Exchange to preserve some of the money we expected to be seized.

Bithumb enjoyed top status in South Korean crypto market before chaos struck. First the $30 million heist and then rejection of proposal for contract with NH Nonghyup Bank. According to South Korean regulations, cryptocurrency exchanges are required to establish partnerships with banks and virtual accounts can only be used for trading if they are backed by a KYC-attested bank account.

Bithumb suspended trading operations after the heist and has resumed trading for 9 currencies only now.

Problems don’t seem to be ending for the exchange as trading volume saw a drop of almost 40% in days after it’s contract proposal was rejected and although Bithumb is hopeful for renewal of contract, the chance of complete termination of account activity still remains.

Bithumb, once leading South Korean cryptocurrency exchange, has now fallen to second, behind UPbit which had a 24-hour volume of $219 million.

Sarim Mehmood

An electrical engineer to be. Sarim is a blockchain & crypto enthusiast and an early investor in ETH and Ethereum based projects. Contact the editor at editor.opinions@blockpublisher.com

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