However, in light of the recent Bithumb breach, investors have lost trust in local cryptocurrency exchanges and the market, primarily because the Bithumb hack occurred merely weeks after the $40 million hacking attack of CoinRail was disclosed.
South Korea-based cryptocurrency exchange Bithumb has confirmed that virtual currency worth about $31.5 million has been stolen by hackers.
Bithumb did not reveal any details about this latest hack, such as what cryptocurrency the hackers stole, how they got into their IT system, or how they exfiltrated funds. Those stolen cryptocurrencies will be covered from Bithumb, and all of [our] assets are being transferred to [a] cold wallet.
"Since coins in the cold wallets are not at all wired to the internet, it would have been impossible for hackers to steal those in cold wallets unless they physically broke in", said In, a blockchain expert at the research centre.
The attack is the second to hit a crytopexchange in the country in 10 days. The exchange service also began to move all coins stored in online wallets to more secure offline wallets to prevent more theft.
"No security measures or regulations can 100 percent guarantee safety of virtual coins". Earlier this month, a small exchange in South Korea called Coinrail was hacked and reportedly lost coins worth $37 million.
The crypto-mania that spread worldwide previous year was particularly intense in South Korea, with Bitcoin prices in the country at one point climbing to a 50 per cent premium over those in America. The cyber attacks come after a high-profile theft of over half a billion dollars worth of digital currency at Japan's exchange Coincheck earlier this year. But the government said it does not intend to go as far as shutting down domestic exchanges.