Coinrail Exchange Loses Over $40 Million Following a Hack

Written by Sajwar Sohail
Published on June 11, 2018

The world of cryptocurrencies is going through a rough patch. Multiple incidents have taken place in the past few weeks which raises questions about the safety and security of cryptocurrencies. Recent news reported that nearly $1.1 billion in digital currency has been stolen this year alone. This time, it is a South Korean Cryptocurrency Exchange called Coinrail which became the victim of hackers and criminals. The exchange announced that a cyber incident took place where the intruder ended up gaining $40 million in tokens.

Coinrail confirmed that the $40 million worth of tokens belonged to the ICO tokens that were stored on the servers. The South Korean cryptocurrency exchange confirmed the cyber incident via its website. It is believed that the hack took place during the issuance of ICOs of Aston (ATX), NPER (NPER), and Pundi X (NPXS).

Coinrail hack

Image Courtesy of Coinrail

The company further confirmed that it was the users’ tokens that were stolen. As of now, the exchange has not announced how it will be compensating the users who ended up losing their valuable token to this cyber incident. Coincheck, which is based in Japan, compensated its users by offering a refund after a high profile hacking activity took place on the platform.

Coinrail reported that Pundi X faced the biggest loss in this cyber intrusion while NPER lost about $860,000 worth of tokens on the platform.

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