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Coinrail Hack See's Markets Crash As $40 Million Stolen

11 June 2018

Bitcoin (BTC) has fallen as much as 6% over the past 24 hours as South Korean cryptocurrency exchange Coinrail said there was a "cyber intrusion" in its system that lead to a theft of over 2.6 billion Pundi X (NPXS) and a host of other Ethereum-based (ETH) virtual tokens. That widens Bitcoin's losses for the year to 52 per cent. 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. The latest to fall victim is the South Korean cryptocurrency exchange, Coinrail.

Without disclosing the exact amounts stolen, Coinrail revealed some of the stolen ERC-20 tokens, namely NPXS tokens from Pundi X, a payment project; ATC from Aston X, a decentralized document project and; NPER tokens from the namesake decentralized IP project.

Bitcoin was trading at $6,780, down from more than $7,500 before the weekend, according to Coindesk, which monitors prices.

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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.

Coinrail is not a member of the group that promotes self regulations to enhance security. "Coinrail confirmed in its statement that the exchange is fully cooperating with a police investigation into the hacking, and that trading has been suspended for now".

In South Korea, 14 major local cryptocurrency exchanges adopted measures aimed at better protecting users in January this year, including restrictions on creating more than one account.

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The price plunges were also linked to a report on Friday from the Wall Street Journal (paywall) that U.S. regulators are investigating four major crypto exchanges, including Coinbase and Bitstamp, for price manipulation.

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. The company wasn't immediately available for further comments.

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Coinrail Hack See's Markets Crash As $40 Million Stolen