Bitcoin continues to slide on Tuesday taking its year to date losses to 50 per cent with prices touching the low of $6863.24, down from more than $13,650 on January 1, 2018. Alternative currencies such as Ripple and Ethereum are also down by over 10 per cent, after the South Korean cryptocurrency exchange Coinrail was hacked over the weekend. The heist led to massive selling as it jolted the holders of digital currencies about their security.
Conrail’s website stated that the exchange has managed to freeze all exposed coins. However, the website did not mention anything about the value of digital currency stolen by hackers. Coinrail said “70% of total coin and token reserves have been confirmed to be safely stored and moved to a cold wallet [not connected to the internet]. Two-thirds of stolen cryptocurrencies were withdrawn or frozen in partnership with related exchanges and coin companies. For the rest, we are looking into it with an investigative agency, related exchanges and coin developers.”
In early January the total market cap of digital currencies was worth about $830 billion. However, according to Coinmarketcap.com, the current value has dropped to $300 billion. South Korea is one of the biggest cryptocurrency trading centres. In the recent months, concerns have raised over the security of cryptocurrencies. In late January, nearly $500 million was stolen from the Japanese exchange Coincheck Inc.
In India also Bitcoins worth Rs 19 crore got stolen from a Delhi-based Bitcoin exchange, Coinsecure. The company filed an FIR with the cyber cell accusing Amitabh Saxena, CSO of Coinsecure. In a letter put out on the website of coinsecure it was stated, “Our system itself has never been compromised or hacked, and the current issue points towards losses caused during an exercise to extract BTG to distribute to our customers. Our CSO, Dr. Amitabh Saxena, was extracting BTG and he claims that funds have been lost in the process during the extraction of the private keys. “