Cryptocurrencies Fall as Korean Exchange Says $32 Million of Coins Stolen

Cryptocurrencies dropped after the second Southern Korean exchange in as many days said it was the victim of the theft, renewing fears about the protection of digital-asset trading venues.

Bithumb, ranked seventh in the world by exchanged value on Coinmarketcap. com , said on Wednesday that regarding 35 billion won ($32 million) worth of coins were taken. The exchange said it will make up victims, adding that it has stopped cryptocurrency deposits and withdrawals plus moved investor assets to a alleged cold wallet that’ s shut off from the Internet and less vulnerable to hacking.

Bitcoin, the largest cryptocurrency, fallen as much as 2 percent and had been trading at $6, 598 since 10: 06 a. m. within Hong Kong, bringing this year’ s i9000 decline to 54 percent, according to Bloomberg composite pricing. Other tokens which includes Ripple, Ethereum and Litecoin furthermore retreated.

Enthusiasm for virtual currencies offers waned this year partly due to a chain of cyber heists, including the almost $500 million theft from Japan exchange Coincheck Inc. in late The month of january. Last week, a South Korean place called Coinrail said that some of the exchange’ s digital currency appeared to are already stolen by hackers, but it didn’ t disclose how much.

Read more: Crypto’ s Wild West Traders Acquire some Pointers From Financial Pros

South Korea has been at the center of last year’ s global crypto-mania, playing web host to some of the world’ s many active exchanges. Demand for Bitcoin was so extreme at one particular point that it lifted prices in the land 50 percent higher than those in America.

The risky fervor has since cooled among a government crackdown, but Korean exchanges are still among the world’ t most active. The country’ h policy makers are debating extensive regulations for cryptocurrencies, with plans ranging from shutting down local trades to allowing them to operate under improved supervision.

Click the link for a QuickTake explainer on cryptocurrencies in South Korea.

Some Asia-listed stocks with exposure to digital foreign currencies fell upon Wednesday. South Korea’ s Omnitel Inc. and Vidente Co. retreated at least 9 percent.