Bithumb will fully compensate investors after hack: ‘$450 million in company fund’

Bithumb has ensured customers that it will fully cover the loss of over $30 million worth of stolen cryptocurrencies during a hack earlier this week. The Korean exchange revealed more details in a statement today.

Bithumb states that immediately after the incident, it reported the hack to the KISA (Korea Internet & Security Agency) following the procedure. The exact amount of cryptocurrency stolen during the hack has not been confirmed yet.

The current expectation is that 35 billion Korean Won was stolen, but Bithumb says: ‘As we undergo the recovery process on each cryptocurrency, the overall scale of damage is getting reduced. Hence we expect that the overall damage will be less than the amount we initially expected’. Details on the exact scale of damage will be announced later.

Bithumb ensures that the damage will be fully covered by the company fund. According to the exchange, there is about 500 billion KRW ($450 million) in the company fund. Next to that, the exchange is considering a compensation for users because of the current withdrawal delays. All the cryptocurrencies of the company and customers are safely stored in the cold wallet, while KRW assets are stored on a bank account. Bithumb states that ‘all the assets of costumers are intact and fully secured’.

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Simon Price

Simon has been active in the cryptosphere for over 7 years and is passionate about new technology. When he's not blogging and trading he can be found catching the surf on his local beach.