Coinrail hackers steal US$37.28million worth of virtual coins

Over the weekend, Coinrail was hacked, causing $37.28million worth of virtual coins to be stolen, according to Reuters.

The South Korean cryptocurrency exchange company revealed on its website that its system was hit by “cyber intrusion on Sunday”, which caused 30% of ERC-20 based tokens to be stolen from the platform.

Yesterday, the company also alerted the project to an Ethereum address (Fake_Phishing1432), which is believed to be associated with the hacker.

Cryptocurrency transactions

Transactions connected with Fake_Phishing1431 revealed that it received a variety of cryptocurrencies from a single address several hours before Coinrail reported the hack, which included tokens from other projects such as Kyber Network, Storm, Jibrel Network and Tron.

The hack raised concerns about virtual currency security, as well as policymakers around the globe failing to meet trading regulations.

Following this, investors have been warned about trading digital currencies, causing the cryptocurrency market to fall behind. In less than two hours, Bitcoin dropped from US$7,240 to US$6,752, and Ethereum lowered from US$570 to $511, with its current price being US$533.

‘Bitcoin may never recover’

“It’s one more drop in the ocean of crypto-breaches will unlikely drive any substantially new conclusions or concerns. This Bitcoin drop seems to be a temporary fluctuation, investors are now waiting for some good or bad news,” commented Ilia Kolochenko, CEO and Founder of High-Tech Bridge.

“The emerging problem of Bitcoin is its extreme influence ability by third-parties. A well-prepared hacking campaign, targeting top Western media agencies, can virtually ruin Bitcoin after releasing fake news about major breaches and subsequent cryptocurrency ban by major countries. People playing short can make unprecedented profits, however, Bitcoin may never recover at the end of the day.”

Coinrail also announced that 70% of virtual coins are now secure in its internet-connected platform “cold wallet”.

Written by Leah Alger