South Korea's second-largest cryptocurrency exchange, Bithumb, said an outsider broke into its internal employee mobile system and stole personal information, though no crypto funds were reported lost. The breach comes as the country's Financial Supervisory Service investigates a wave of cyberattacks on major financial investment companies.
Bithumb, the second-largest exchange in South Korea by trading volume, said earlier Wednesday an outsider breached the internal mobile system its employees use to work and communicate, and that personal information was taken. No cryptocurrency funds were reported lost as of Asian afternoon hours.
The exchange found the intrusion on Tuesday and reported it to the Korea Internet & Security Agency and the Personal Information Protection Commission, according to Korean media. Bithumb told Yonhap it was analyzing the exact scope, "including the possibility of member information being involved." It said the breached system runs separately from its trading platform, so "customer virtual assets cannot be accessed through this breach." The exchange has not said whether deposits or withdrawals were affected or how many people's data was exposed.
This is the second incident to hit Bithumb's controls this year. In February, the exchange mistakenly credited customers with 620,000 BTC, worth more than $40 billion at the time, instead of 620,000 won. CEO Lee Jae-won blamed the error on weak internal controls, saying the exchange was "acutely aware of the deficiency in internal system control."
The Bithumb breach is one of several cyberattacks on South Korean financial firms. Financial Supervisory Service Governor Lee Chan-jin told a meeting with bank holding company chairs, "I understand that major financial investment companies experienced overall hacking incidents yesterday." Earlier in the month, he said cyberattacks had hit 16 South Korean financial firms as of Oct. 14.
Daishin Securities said personal and credit information for 38,490 of its customers leaked in an outside attack. Mirae Asset Global Investments said it blocked abnormal access to some of its web systems and that investor information was not affected.
Bithumb was one of three financial firms the Financial Supervisory Service said it was assessing on Wednesday.
Analysis
Why This Matters
- The breach highlights persistent security vulnerabilities at major cryptocurrency exchanges, even after a high-profile error earlier this year.
- South Korean regulators are already investigating a broader wave of cyberattacks on financial firms, raising concerns about systemic cybersecurity.
- If personal information is confirmed to be involved, affected users could face phishing or identity theft risks.
Background
South Korea has a highly active cryptocurrency market, with exchanges like Bithumb and Upbit handling significant daily trading volumes. The Financial Supervisory Service (FSS) oversees financial firms and has been increasingly focused on cybersecurity after a rise in attacks. Bithumb's February incident, where it mistakenly credited 620,000 BTC to customers due to weak internal controls, drew regulatory scrutiny and prompted promises of reform.
Key Perspectives
- Bithumb: Says the breach compromised an internal employee mobile system, not the trading platform, and that no crypto funds were lost. It is investigating the scope, including possible member information exposure.
- Financial Supervisory Service Governor Lee Chan-jin: Stated that major financial investment companies experienced "overall hacking incidents" yesterday, and earlier this month reported 16 firms had been hit.
- Daishin Securities: Reported that personal and credit information for 38,490 customers leaked in an outside attack.
- Mirae Asset Global Investments: Said it blocked abnormal access to some web systems and that investor information was not affected.
What to Watch
- Whether Bithumb confirms that member information was involved and how many users are affected.
- Any regulatory actions or fines from the FSS and the Personal Information Protection Commission.
- Further disclosures from other South Korean financial firms about similar breaches.
Checked
12 claims in this story checked against 1 source: 10 supported.
Show each claim
- SupportedAn outsider breached Bithumb’s internal employee mobile system.CoinDesk: Bitcoin, Ethereum, Crypto News and Price Data: “Bithumb ... said earlier Wednesday an outsider broke into the internal mobile system its employees use to work and message each other”
- SupportedBithumb said personal information was stolen in the breach.CoinDesk: Bitcoin, Ethereum, Crypto News and Price Data: “Bithumb ... said earlier Wednesday an outsider broke into the internal mobile system its employees use to work and message each other and that personal information was taken.”
- SupportedNo cryptocurrency funds were reported lost.CoinDesk: Bitcoin, Ethereum, Crypto News and Price Data: “No crypto funds were reported lost as of Asian afternoon hours.”
- Partly supportedThe summary says the breach followed a wave of attacks on South Korean financial firms.CoinDesk: Bitcoin, Ethereum, Crypto News and Price Data: “The breach comes amid cyberattacks on South Korean financial firms”
- Partly supportedThe Financial Supervisory Service is investigating a wave of cyberattacks on major financial investment companies.CoinDesk: Bitcoin, Ethereum, Crypto News and Price Data: “Bithumb was one of three financial firms the Financial Supervisory Service said it was assessing on Wednesday.”
- SupportedBithumb found the intrusion on Tuesday and reported it to the Korea Internet & Security Agency and the Personal Information Protection Commission, according to Korean media.CoinDesk: Bitcoin, Ethereum, Crypto News and Price Data: “The exchange found the intrusion on Tuesday and reported to the Korea Internet & Security Agency and the Personal Information Protection Commission, according to Korean media.”
- SupportedBithumb told Yonhap it was analyzing the exact scope, “including the possibility of member information being involved.”CoinDesk: Bitcoin, Ethereum, Crypto News and Price Data: “It told Yonhap it was analyzing the exact scope, “including the possibility of member information being involved.””
- SupportedBithumb said customer virtual assets cannot be accessed through the breach because the compromised system is separate from its trading platform.CoinDesk: Bitcoin, Ethereum, Crypto News and Price Data: “It said the breached system runs separately from its trading platform, so “customer virtual assets cannot be accessed through this breach.””
- SupportedIn February, Bithumb mistakenly credited customers with 620,000 BTC worth more than $40 billion at the time instead of 620,000 won.CoinDesk: Bitcoin, Ethereum, Crypto News and Price Data: “In February it mistakenly credited customers with 620,000 BTC, worth more than $40 billion at the time, instead of 620,000 won.”
- SupportedCEO Lee Jae-won blamed the February error on weak internal controls and said the exchange was “acutely aware of the deficiency in internal system control.”CoinDesk: Bitcoin, Ethereum, Crypto News and Price Data: “CEO Lee Jae-won blamed the error on weak internal controls at the time, saying the exchange was “acutely aware of the deficiency in internal system control.””
- SupportedFSS Governor Lee Chan-jin said major financial investment companies experienced overall hacking incidents yesterday.CoinDesk: Bitcoin, Ethereum, Crypto News and Price Data: ““I understand that major financial investment companies experienced overall hacking incidents yesterday,” FSS Governor Lee Chan-jin told a meeting with bank holding company chairs.”
- SupportedLee Chan-jin said cyberattacks had hit 16 South Korean financial firms as of Oct. 14.CoinDesk: Bitcoin, Ethereum, Crypto News and Price Data: “Earlier in the month he said cyberattacks had hit 16 South Korean financial firms as of Oct. 14.”
