South Korea's Bithumb Crypto Exchange Back in Action After Hack

South Korean cryptocurrency exchange Bithumb will resume deposit and withdrawal services on Saturday at 11 am KST. Following a June hack, all deposits and withdrawals were suspended on the platform, resulting in a loss of tokens valued at over $30 million. Only ten cryptocurrencies have been approved for the first round of service resumptions.

Bithumb, South Korea's Leading Crypto Exchange, Resumes Operations After Hack

Seoul, South Korea - Bithumb, South Korea's largest cryptocurrency exchange, has announced the resumption of deposit and withdrawal services, effective Saturday, August 4, 2018, at 11:00 AM KST. The move comes after the exchange suspended all such transactions following a hack on its hot wallet in June, resulting in the loss of tokens valued at over $30 million.

In a statement released via its official Twitter handle, Bithumb announced the phased reopening of its platform, emphasizing the prioritization of security and customer protection.

Gradual Resumption and Selective Cryptocurrency Support

In the initial phase of service resumption, only a select group of 10 cryptocurrencies will be supported for deposits and withdrawals: Bitcoin (BTC), Ethereum (ETH), Ripple (XRP), Ethereum Classic (ETC), Qtum (QTUM), Litecoin (LTC), Bitcoin Cash (BCH), Monero (XMR), Zcash (ZEC), and Mithrill (MITH). Deposits and withdrawals for 25 other cryptocurrencies remain suspended for the time being.

Bithumb has explained that this staggered approach is designed to safeguard customer assets, as some cryptocurrencies exhibit significant price discrepancies between the Bithumb market and standard markets. The exchange aims to prevent potential losses resulting from rapid price fluctuations once regular services resume.

Enhanced Security Measures and Depositor Protection

Bithumb has implemented several enhanced security measures in the wake of the hack. All deposit addresses have been changed, and customers are advised to request new ones to ensure secure transactions. Moreover, all uncredited deposits made during the suspension period will be returned to customers.

Suspension of Bank-Linked Virtual Account Issuance

Despite the gradual resumption of services, Bithumb has faced challenges in renewing and establishing contracts with banks, leading to the suspension of new bank-linked virtual account issuance. This suspension aligns with South Korean regulations that prohibit cryptocurrency trading through anonymous virtual bank accounts.

Positive Market Outlook and Industry Implications

Bithumb's market absence following the hack had a negative impact on the Korean crypto market. However, the exchange's passing of recent security audits and the announcement of its phased reopening have raised hopes for a positive knock-on effect on crypto trading in South Korea.

Industry analysts believe that Bithumb's gradual return to operations could restore confidence in the Korean cryptocurrency market and potentially spur renewed interest in digital asset trading.

Conclusion

Bithumb's resumption of deposit and withdrawal services marks a significant step in the recovery process following the June hack. The exchange's phased reopening and selective cryptocurrency support demonstrate its commitment to security and customer protection. While the suspension of bank-linked virtual account issuance poses a temporary challenge, industry experts anticipate a positive impact on the Korean crypto market as Bithumb regains its market position.