Market Declines as Korean Crypto Exchange Coinrail Faces Hack

The south Korean crypto exchange ‘Coinrail’ has reportedly been hit by hackers losing about 2.6 billion Pundi X (NPXS) and some other altcoins.

The hacking incident occurred on Sunday, and the exchange confirmed the intrusion on a twitter post.

In a statement on its website, Coinrail has announced that it is currently reviewing its security systems due to the hacking attempts and was able to freeze the all  Pundi X (NPXS), NPER (NPER), and Artex Coin (ATX).

The company said it has successfully secured 70% of the total coin/token and are in cold wallets.

“At present, 70% of your coin rail total coin / token reserves have been confirmed to be safely stored and moved to a cold wallet and are in storage.

Two-thirds of the coins confirmed to have been leaked are covered by freezing / recalling through consultation with each coach and related exchanges. The remaining one-third of coins are being investigated with investigators, relevant exchanges,  and coin developers,” the statement reads.

Users are currently unable to access their accounts and other information on the website due to the ongoing investigation. The statement from the company is the only accessible information on the site.

Pundi X has revealed it would be assisting Coinrail in its investigation and according to a tweet from Pundi X, all NPXS transactions have been suspended until 18:00:00 SGT (GMT+8) on June 10, 2018.

The hack triggered a sell-off in the crypto markets as Bitcoin quickly slipped from $7620 to $7207.19, a 5.6% drop within two hours and Ethereum dropping down by 5% within that time. At the time of writing, the market capitalization of all cryptocurrencies is  $317 billion down from $470 billion

Coinrail Exchange – Not among the giants

It is quite strange to see that the hack of the eight-month Coinrail could affect the crypto market. According to coinmarketcap, the exchange is currently at 94th position with a 24 hours trading volume of $2,656,683 at the time of writing.

Indeed, the continuous growth in the cryptocurrency industry continues to breed more hackers and cybercriminals. Crypto exchanges, wallet providers, and investors have to take extra care in securing their digital asset.