One of the popular cryptocurrency exchange Bithumb of South Korea and other crypto exchanges were surrounded by controversies for some time. Recently, Bithumb was hacked and resulted in a loss of XRP and EOS of worth millions. Now the exchange is in a bad position, and the controversies are just increasing.
Two weeks ago, after the hack incidence, Bithumb requested its users to stop withdrawing and depositing cash because the Korean officers were carrying investigation and now the exchange has resumed some part of its services.
Regarding the hack, the company believes it to be a job of an insider, a person from within might have decided to take the money. The investigation is carried out jointly by KISA and various cyber-security agencies; the investigation process is still in progress.
Bithumb is managing to resume its services partially as of now and assured users that they will be able to withdraw limited assets.
It was important for Bithumb to take an important step to stop offering services to examine what happened with the authorities jointly and to verify the assets that the company owns by using an outside firm.
The two tokens that were significantly affected by the hack were Ethereum and Bitcoin. There are other tokens that are offered by the exchange, and now the firm has restored its withdrawal and deposit services for both the tokens.
Bithumb mentioned that the exchange took this step to reduce the inconveniences that caused its customers at the time when the company had stopped a few of its services.
The Bithumb mentioned in a statement: “We would like to ask you to stop making deposits of cryptocurrency in order to check our member’s assets through external organization” further “and to cooperate with the investigating agency in connection with an accident that is supposed to be an internal embezzlement that occurred on March 29th.”
The resuming of partial services of Bithumb was announced through a tweet on Twitter, April 7 at 3 PM, local time. The service will be restored with advanced features like “enhanced security and monitoring systems” to protect the crypto assets of the users. The company has not mentioned about the relative changes that it has done to the security system.
However, the exchange said that there will be more security features included in the coming months and has promised of developing improved security systems, help to record all the activities on the exchange.
All the deposits that were made at the time of suspension will be restored on 17th April; the exchange will completely unlock the services and process them.
Bithumb is having a mixed time. Regardless of the hack, the company incurred a loss of around $180 million USD in 2018 due to the crypto bear market. Meanwhile, the exchange gained fund of more than $200 million USD which is through a Japanese firm, and the exchange is thinking of expanding in the Western markets. The exchange might have some obstacles, but planning itself for a great future.