Bitcoin price hits two-month low following major cryptocurrency theft

Although reports have suggested that bitcoin might be valued at massive figures in the coming years, at present, things do not look too good for the famous cryptocurrency. South Korean cryptocurrency exchange, Coinrail, has revealed that it was targeted by hackers on Sunday, leading to bitcoin's price tumbling down to a two-month low.

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It has also been confirmed by Coinrail in a statement on its website, that around 30% of token reserves have been compromised, with the rest being safely stored. Although the exact amount of damage caused by the theft is yet to be confirmed, South Korean news outlet Yonhap News has estimated it to be around 40 billion won ($37.2 million). The crypto-exchange has also commented on the current state of the remaining undamaged assets, noting:

"All assets of CoinRail, which have not been leaked, are moved to a cold wallet and are kept safe, and transactions and withdrawals will resume after stabilizing the service. We will update the announcement when possible."

However, it has declined to give full details regarding the matter, citing the possibility of interference with the investigation being undertaken by relevant agencies as the reason for doing so.

Following the hack, bitcoin price fell down by 10% to around $6,600 on Sunday. However, it has risen slightly since then, currently being valued at $6,768. Other cryptocurrencies have also reportedly faced large losses.

This isn't the first time cryptocurrencies have been plagued by cyber-attacks. Only a few months ago, 600 bitcoin mining servers were stolen from Iceland, in what was dubbed the 'Big Bitcoin Heist'. With countries like Pakistan and Iran recently banning their banks from trading bitcoin - or any other cryptocurrency for that matter -, it will be interesting to see how well the famed virtual currency fares in the coming years.

Source: Coinrail via The Guardian

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