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Coinrail reports $37.2 million USD loss in the wake of a “cyber intrusion”

South Korean cryptocurrency exchange Coinrail has reported a hack that might amount to losses greater than $37.2 million USD.

Written by Bryan Smith Published on

South Korean cryptocurrency exchange Coinrail has announced that it has suffered a ‘cyber intrusion’ – and the resulting hack has been thought to have plundered some 40 billion won ($37.2 million USD) in various digital currencies.

In a press release issued today, Coinrail disclosed that a number of ERC-20 tokens had been stolen – consisting of NPXS, ATC, and NPER.

While Coinrail has not moved to disclose what amounts of each cryptocurrency were taken, Pundi X – the hands behind NPXS – have claimed that 2,619,542,08 NPXS tokens have been stolen; amounting to a theft of some  $19.5 million USD.

In the wake of the attack, Coinrail has stated that 70% of its reserves have been moved into an offline cold wallet, while two-thirds (20%) of the remaining 30% have been frozen or recalled. In a release, Coinrail confirmed that “…the remaining one-third of coins are being investigated with investigators, relevant exchanges and coin developers.”

A wallet address that purportedly belongs to the hacker(s) in question contains to some  93 million ATX tokens, 831 million DENT tokens, and other cryptocurrencies including Jibrel Network, Storm, Kyber Network, and Tron.

[Translation – [06.10] At 15:00 investigation, the other exchange, coin developers are working hard to recover the total amount of the leaked coins such as Ferndix, Enfer, and Aston in cooperation with two-thirds of the amount collected or recovered, as well as the cooperation of the investigation and related institutions for the remaining coins.]

Notably, Coinrail is not a member of Korea’s Blockchain Industry Association, which works towards fostering mutual security standards for cryptocurrency exchanges in the country. In a statement to Reuters, Association representative Kim Jin-Hwa offered that “Coinrail is not a member of the group that promotes self-regulations to enhance security. It is a minor player in the market and I can see how such small exchanges with lower standards on security level can be exposed to more risks.”

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Written by

South African technology journalist, podcaster, photographer and filmmaker. Hodling - BTC, NEO, ETH.@bryansmithsa

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