Bitcoin's Sunday Slump Sparked by Hack

Bitcoin Drops $600 Dollars in an Hour – What’s Happening

Bitcoin Drops $600 Dollars in an Hour – What’s Happening

A small toy figure is seen on representations of the Bitcoin virtual currency in this illustration picture, December 26, 2017.

Bitcoin has dropped 11% since 5pm NY time on Friday and was trading at $6,784.04 as of 10.21am in Hong Kong on Monday, bringing its year-to-date loss to 53%. It did not give the value of the stolen coins but Yonhap News agency cited unnamed industry sources saying about coins worth about 40 billion won ($37 million) were lost. Most other major virtual currencies also slumped, sending the market value of digital assets tracked by Coinmarketcap.com to a almost two-month low of $294 billion. Two-thirds of remaining 30 percent of token compromised have been frozen or recalled through consultation with developers like Pundi X and communication with exchanges like IDEX, the operator said.

Coinrail was mostly trading ERC20 tokens, according to CoinMarketCap.

A cryptocurrency exchange hack in South Korea jolted holders of digital assets, fueling a $46 billion rout and extending this year's Bitcoin slump to more than 50%.

In 2014, Tokyo-based Mt. Gox, which once handled 80 percent of the world's bitcoin trades, filed for bankruptcy after losing bitcoins worth around half a billion dollars.


The hack brought an abrupt end to two weeks of calm for the biggest virtual currency and reignited concerns about the security of lightly regulated crypto exchanges.

Global policy makers have warned investors to be cautious in trading the digital currency given the lack of broad regulatory oversight.

Coins other than Pundi X seem to have been transferred to a wallet at another decentralized cryptocurrency exchange, Etherdelta.

Coinrail contends that 70% of its total coin reserves have been moved to an offline cold wallet and remain safe.

"Coinrail, as of June this year, hasn't been certified with the ISMS, as it isn't mandatory (for the organization to do so)", the local regulator said in a statement. The company wasn't immediately available for further comments.

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