Cryptocurrency owners suffer losses as Bitcoin drops to its lowest in three months. Widespread panic continues to affect its value right after the Coinrail hack.
A Prime Target For Hackers
As the cryptocurrency mining craze continues, hackers appear to have set their eyes on a new target to exploit. Even though experts continue to claim that virtual currency is secure and a feasible investment, the number of cyber attacks proves otherwise.
Most people note that South Korea is fast becoming a hotspot for investing in cryptocurrencies. Therefore, it is now the prime target of online criminals who want to make a quick buck.
To prevent further attacks, the company confirms that it will temporarily freeze its remaining assets until investigations are over. Moreover, it plans to revisit its security measures to determine its weaknesses.
A Big Impact On The Market
According to financial analysts, the Coinrail hack is responsible for the significant depreciation of Bitcoin, which is now listed below $7,000. Threats of future attacks presumably prompted traders to sell off what they own at a loss. It seems like the trend will likely continue until authorities and cryptocurrency exchange firms can come up with stronger security methods.
The company did not release further details regarding the total value stolen from the heist, but sources were able to gather the data. The hackers took $5.8 million in Dent tokens, over $1.1 million Tron, $13.8 million from Aston X, and $19.5 million in NPXS tokens.
It remains to be seen how Coinrail will approach their clients regarding compensation. Experts want to remind investors that cryptocurrency trading needs to be regulated. There are no set rules and procedures to follow in an event of a hack wherein owners are left with nothing. Another alternative is to keep crypto tokens in a private wallet (some offer an optional hardware device to gain access).
Other Hacking Incidents
The Coinrail attack marks the second time a South Korean company was victimized by hackers. Late last year, Youbit, another cryptocurrency exchange filed for bankruptcy after its Bitcoin reserves were stolen. Authorities even suspected that North Korea was involved. However, nothing substantial was found that could prove the speculation.
Other sources want to redirect investigators to closely monitor the most recent activities of these crypto trading businesses. Youbit reportedly signed up for a cyber-insurance policy just before it was hacked. There is a real possibility that some of these attacks might be an inside job to collect insurance money.