Multimillion Acquisition of South Korean Cryptocurrency Exchange Bithumb Flounders 

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Multimillion Acquisition of South Korean Cryptocurrency Exchange Bithumb Flounders 
The acquiring party of premier South Korean Bithumb has failed to live up to its obligations prompting fears that the acquisition worth over $330 Million has gone sour.
Multimillion Acquisition of South Korean Cryptocurrency Exchange Bithumb Flounders 

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Source: CoinSpeaker

Bithumb Confirms That BK Consortium Fails To Pay Acquisition Payment, What’s Next?

The issue of Bithumb sale to BK Global Consortium has been around since the second quarter of this year. However, BK Global Consortium is said to have failed to pay the expected acquisition payment as at a day before the deadline. This, therefore, raises question as to what might become of the described arrangement. Will bithumb remain unsold? If so, what’s next?
Bithumb Still Up For Sale
As per a report by crypto media platform, BlockInPress, as at today 30th of September, BK Global Consortium is yet to pay the agreed acquisition payment expected to be made in their pursuit of crypto currency exchange, Bithumb. This comes following a statement by Bithumb’s official,
“You must wait until today, which is the deadline, to know the situation.” “It is difficult to give an accurate answer in practice, and the deadline must pass.”
Bithumb’s Acquisition Payment Was Once Delayed
In April, it was reported that the acquisition of Bithumb by the BK Global Consortium (BXA), which is controlled by BK Group Chairman Kim Byung Gun, was delayed to September 2019. Initially, by the end of March, BXA was said to have signed the main contract to buy 50% + one share of BTC Korea Holdings, which was the largest shareholder of BTS Korea.
According to Bithumb officials in April,
“BXA decided to increase its stake in BTC Korea Holdings up to 70%, and the payment date was delayed six months later.”
The Deal Initially Announced In 2018
A deal initially erupted last year when Daily Economy in Seoul reported that Bithumb had been sold to BK Global Consortium. At the time, the deal was said to have been pulled off for about $353 million dollars. According to a report later published by The News Asia,
BK Global Consortium plans to maximize the potential of the exchange through its block chain e-commerce settlement system and stable coin operation, which greatly reduce commissions on the existing settlement system.
However, the deal was never completely pulled off until early 2019 when BlockInPress reported that the arrangements to purchase Bithumb had been postponed till September, 2019 of which today happens to be the deadline of acquisition payments.
Bithumb, which at the time was said to have experienced abnormal withdrawals later responded by giving an official announcement. In its statement,
“customer assets were safely stored in the cold wallet” and “unusual cryptocurrency deposit and withdrawal seems to have touched our assets.” “The abnormal withdrawal is estimated to have occurred at 22 o’clock on the 29th of last month, and we confirmed the external withdrawal situation and stopped the withdrawal service at 23:00.”
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Source: CoinGape

Ethereum wash-traded by around 75%, while XRP amounts to 55%, and Litecoin wash-traded by 74%, according to research

Wash trading tactics, to boost cryptocurrencies’ price, have reduced by 35.70% in the past few months. According to the study conducted, exchanges such as Kraken, Poloniex, Coinbase and Upbit were the cleanest exchanges in terms of real trading volume. The report also detailed about OKEx and Bibox, which were diametrically opposite to aforementioned exchanges, as […]
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Source: AMB Crypto

Binance’s monthly volumes continue to dominate despite 41% fall in July figures

CryptoCompare, a cryptocurrency data provider, launched digital asset exchange review guidelines a while back, a review that ranks exchanges every month. CryptoCompare released its first report in August, revealing the performances of exchanges for the month of July, a month where Binance led the board with a whopping $42.1 billion monthly volume. The data provider […]
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Source: AMB Crypto

UN Begins Official Investigation into Cyber Crime Sponsored by North Korea

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UN Begins Official Investigation into Cyber Crime Sponsored by North Korea
Following its report naming North Korea as the brain behind several crypto cyberattacks, the UN has now begun an official investigation into the illicit activity.
UN Begins Official Investigation into Cyber Crime Sponsored by North Korea

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Source: CoinSpeaker

North Korea Using Crypto Mining to Fund Military; UN Investigations Underway

The United Nations (UN) is investigating 35 North Korea cyber attacks in 17 countries, according to an article published by the Associated Press. The news comes after a list of countries including South Korea, India, Bangladesh, and Chile were reported to have become the victims of malicious cyber attacks originating from North Korea.
As more nations become the victims of malicious cyber attacks traceable to North Korea, the United Nations has swung into action to tackle the growing problem and has reportedly been able to identify the various modes of operation of the hackers in question.
North Korea May Be Mining Cryptos To Fund Military Branches
According to the report, one of the ways in which the hackers operate is by launching attacks on both cryptocurrency exchanges and users to take control of cryptocurrency wallets with the aim to steal valuable cryptocurrencies like bitcoins. Another known method is by crypto mining activities for funding professional military branches.
According to the article, investigations also revealed cases of “cryptojacking” in which malware is used to illicitly take control of computer systems to gain computational power for generating cryptocurrency. Previously, a report had analyzed a piece of malware designed to mine the cryptocurrency Monero “and send any mined currency to servers located at Kim Il-sung University in Pyongyang”.
North Korean Hackers Stole $58 Million From Bithumb
As per users and exchange attacks, one of the neighboring country’s big cryptocurrency exchanges, Bithumb has reportedly fallen victim on at least 4 different occasions between 2017 to 2019, losing about $58 million in the process. The first two attacks were launched in 2017. The exchange had lost around $7 million to the attack at the time. About a year later, another attack was launched in which the hackers made away with about $30 million before finally launching the latest one in March 2019. The 2019 attack claimed $20 million from the exchange.
North Korea Stealing Funds To Build Weapons
More countries keep lodging reports of illicit cyber activities of North Korean origin. According to a report by the U.N. Security Council North Korea sanctions committee published about a week ago, North Korea has used “widespread and increasingly sophisticated” cryptocurrency hacks to collect roughly $2 billion. These funds were reportedly used to fund its various weapons of mass destruction.
The post North Korea Using Crypto Mining to Fund Military; UN Investigations Underway appeared first on Coingape.
Source: CoinGape

Huobi Announces the Lauch of Its Fully Regulated OTC Desk

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Huobi Announces the Lauch of Its Fully Regulated OTC Desk
The newly introduced fully regulated Huobi OTC Desk is targeted at high net worth individuals and institutional investors.
Huobi Announces the Lauch of Its Fully Regulated OTC Desk

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Source: CoinSpeaker

Almost One-Third of Bitcoin Exchange Users Come from the US: Report

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Almost One-Third of Bitcoin Exchange Users Come from the US: Report
According to the report published by DataLight, the USA leads the world in crypto trading, with Japan and South Korea taking the second and the third places.
Almost One-Third of Bitcoin Exchange Users Come from the US: Report

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Source: CoinSpeaker

Bithumb’s parent company receives $200 million investment from Japan’s ST Blockchain Fund

Bithumb’s parent company, Blockchain Exchange Alliance [BXA], received a massive $200 million in funding during its Series A round. This huge sum was offered by Japan’s ST Blockchain Fund, reported Coin Telegraph. Though based in Japan, ST Blockchain Fund interests investors from around the world, including Europe and the United States.
BXA is raising funds to take Bithumb to the international level. Bithumb, already one of the largest exchanges in South Korea, will expand in international markets with new trading pairs.
BXA’s press release read,
“The fund shared our vision of creating a global digital exchange platform that can efficiently transfer value across borders with lower costs, which was the key rationale behind this investment decision.”
The news of massive funding comes in after Bithumb lost around $13 million in March following a hack. According to reports, this was considered to be an inside job, done to deceive the company. However, in the third-party public audit, Bithumb reassured investors that their funds were in a secure storage.
Bithumb was also hacked in 2018, losing around $30 million. However, the figure was later corrected to $17 million. The investment by ST will be a much-needed impetus to Bithumb, an exchange that has been reeling under major losses. It has been reported that the South Korean exchange reported losses over $180 million since the price of Bitcoin dropped, while it also had to lay off half of its staff last month.
The timing of the investment also falls in line with the rising prices of cryptocurrencies, especially since Bitcoin has finally breached the $5K mark
The post Bithumb’s parent company receives $200 million investment from Japan’s ST Blockchain Fund appeared first on AMBCrypto.
Source: AMB Crypto

Bithumb resumes Bitcoin [BTC] and Ethereum [ETH] withdrawal and deposit services

Bithumb, one of South Korea’s leading and more controversial crypto-exchanges, has been in the news for quite a while now. Just a few weeks ago, the exchange was hacked, contributing to the loss of millions in XRP and EOS. Almost two weeks after the exchange asked users to stop withdrawals and deposits, Bithumb today announced the partial resumption of the services.
Following the hack, which the exchange claimed was an inside job, Bithumb had asked its users to stop making cryptocurrency deposits while an investigation by KISA and several cyber-security agencies was still underway. The full statement read,
“We would like to ask you to stop making deposits of cryptocurrency in order to check our member’s assets through external organization and to cooperate with the investigating agency in connect with an accident that is supposed to be an internal embezzlement that occurred on March 29th.”
The suspension of these services was deemed “necessary” by the exchange, while a “fair and objective due diligence review” of all cryptocurrency assets held by Bithumb was conducted by an external auditing firm.
The South Korean exchange tweeted that it will be partially resuming withdrawal and deposit services on April 17, 2019, at 3 pm, local time. For the time being, this resumption of service will apply only to Bitcoin [BTC] and Ethereum [ETH] deposits and withdrawals, Bithumb’s blog read. It also stated that this was an attempt at “minimizing the inconvenience” caused by the suspension of services previously.
The exchange also announced that it will be resuming these services with additional and “enhanced security and monitoring systems” in order to safeguard its users’ crypto-assets. However, the exchange failed to go into the specifics of what changes it had made to its security system.
Bithumb’s blog concluded by stating that any cryptocurrency deposits made during the period of suspension would be processed sequentially, when services resume on April 17.
The development would be one of the few pieces of good news for the beleaguered exchange. Recent reports suggested that the exchange incurred a loss of $180 million, since the price of Bitcoin dropped in 2018. Following mounting losses, the exchange had to lay off over 50% of its staff last month.
The post Bithumb resumes Bitcoin [BTC] and Ethereum [ETH] withdrawal and deposit services appeared first on AMBCrypto.
Source: AMB Crypto

Bithumb registers net loss of $180 million following Bitcoin’s price drop

Bithumb, one of South Korea’s largest cryptocurrency exchange platforms, reportedly turned in a net loss of 205 billion Korean Won, approximately worth $108 million in 2018, according to KoreaTimes.
It was reported that the reason behind the loss was the fall of Bitcoin [BTC] and other cryptocurrencies throughout 2018, resulting in low trading volumes. The price of the largest cryptocurrency dropped from around $20,000 at the beginning of the year, to nearly $3000 towards the end of the year. While Bitcoin recorded a loss of over 80 percent from its all-time high, altcoins recorded a loss of over 90%.
The report said,
“Its operating profit stood at 256.1 billion won, which is a 3.4 percent fall from the year before. Sales grew by 17.5 percent to 391.7 billion won […] In terms of sales, we saw a 17 percent increase, and we continue to increase overseas investments”
The exchange also fell victim to a cryptocurrency hack in mid-2018, resulting in the loss of over $17 million. The tokens compromised in the attack last year included Bitcoin [BTC], Bitcoin Cash [BCH], Ethereum [ETH] and XRP. Further, in March 2019, reports surfaced that the exchange laid off nearly half of its employees after Bitcoin’s trading volume fell by 90%.
Additionally, the exchange was compromised by another hack this year that was considered to be an inside job. This March 30 hack reportedly resulted in a loss of over $3 million in EOS and $5 million in XRP. This was followed by the exchange halting deposit services, stating that they would be conducting an external audit of all the cryptocurrencies they held. The details of the audit were released by the exchange on 11 April 2019. The blog post stated (translated from Korean),
Source: Bithumb
The exchange further said,
“This due diligence report is prepared by an external Audit after the due diligence of the financial situation as of April 8, 2019. We are pleased to inform you that our members’ valuable assets are managed and maintained in a systematic/safe manner through the attached due diligence report. We will do our best to keep our member’s valuable assets safe and transparent.”
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Source: AMB Crypto

Bithumb Shared ‘Loss Figure’ Suffered After Recession and Hack Incident

One of the largest cryptocurrency exchanges from South Korea suffered a massive loss within a year. After experiencing the tough year of Hack, Bithumb reports $175 Million in Losses.
Whenever any crypto exchange experiences loss or hack incident, it puts millions of funds in the riskier zone which creates insecurity among other crypto enthusiasts towards their respective exchanges. As such, the vague scene of Cryptopia, QuadrigaCX, Bithumb, and other such exchanges bring a sense of insecurity among millions of those who believe in the future of cryptocurrency.
Per the Korean media, following last month’s hack, Bithumb exchange conducted the professional external audit of its funds. According to official sources, the company had lost around 205.5 billion won in 2018 which is almost $175 million. These figures were published by BTCKorea.com, the parent organization of Bithumb exchange on April 11, 2019.
It says that the attacker stole 35 billion won and early in 2019, the company had laid off 30 employees from its total staff of 340 people citing the massive decline in the price of Bitcoin since late 2017.
It’s worth to note that the firm earlier in 2017 earned a profit of more than $350 million. Moreover, despite substantial price decline in 2018, the firm’s representative said that ‘the company is performing solid’. In his words;
“even during a phase in which the cryptocurrency market is struggling, Bithumb is sustaining a solid business with unique services and global market dominance. Bithumb will put in all efforts in protecting user funds.”
Nevertheless, the firm says that they are looking for more potential in the near future and thus expanding their offerings. It says that;
“In terms of sales, we saw a 17 percent increase, and we continue to increase overseas investments,”
Although exchange has officially shared the figure the awful story of hack and fake volume metrics reports remains on the web. Bithumb wasn’t the only trading platform which had a tough time in the industry – history had the record of many such exchanges.
What do you think about hack movement and record loss Bithumb has had? Share your thoughts with us.
The post Bithumb Shared ‘Loss Figure’ Suffered After Recession and Hack Incident appeared first on Coingape.
Source: CoinGape

Max’s Corner: The Biggest Hacks from a Tumultuous Week in Crypto

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Max’s Corner: The Biggest Hacks from a Tumultuous Week in Crypto
This week, Max Hasselhoff, integration engineer from Bytecoin, takes a look at the Bithumb hack as well as a couple of other hacks and their historical context.
Max’s Corner: The Biggest Hacks from a Tumultuous Week in Crypto

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Source: CoinSpeaker

Top Trending Crypto News of the Week: The Bitwise Report, Bithumb, and Bitcoin ETF Among Major Newsmakers

Key highlights

The bitwise report concludes 95% of the reported volumes in Bitcoin are fake
Bithumb hacked for millions of EOS and XRP
Coindelta exchange succumbs to Indian Government’s lack of crypto regulations
SEC delays Bitwise’s and NYSE Arca Bitcoin ETF Application
Indian Apex court differs Crypto Case hearing on request of the Government

 

 
The Bitwise report concludes 95% of the reported volumes in Bitcoin are fake
This week a Bitwise report literally shook the crypto industry. The report found that 95% of the trading volume in Bitcoin was fake, ginned up through techniques like “wash trading” where a person buys and sells an asset at the same time. The report analyzed 81 exchanges and concluded that the fake traffic was being generated by 71 of them, in order to lure in lucrative “initial coin offerings” and the associated fees, which can run to millions of (fiat) dollars.
Bithumb hacked for millions of EOS and XRP
The world woke to a Saturday with the news of another hack and this time it was Bithumb. The leading exchange faced its second  hack in less than a year and this time the hackers managed to steal 3 million EOS coins and 20 million XRP. The news broke late on Saturday morning (UST) as the crypto entrepreneur and analyst Dovey Wan relayed reports apparently coming from a security firm who were auditing for Bithumb.
Coindelta exchange succumbs to Indian Government’s lack of crypto regulations
Well, the Indian Policy paralysis towards cryptocurrency has taken another exchange down and this time its CoinDelta. It was reported by the founder using the medium channel that the exchange was shutting down operations on 30 March at 2 pm IST. The exchange’s statement on Medium read “It has been really difficult for us to operate Coindelta exchange for the last 6 months. The curb on the bank accounts by RBI has made us handicapped in order to provide seamless deposit and withdrawal services.”
SEC delays Bitwise’s and NYSE Arca Bitcoin ETF Application
The approval for two Bitcoin ETFs has yet again been delayed by the Securities Exchange Commission (SEC) in the US. On 29th March 2019, SEC released a press release of its letter to the Cboe BZX Exchange, Inc., and NYSE Arca and Bitwise citing the designation of a “Longer Period” of time for the pending decision. The notice read “The Commission finds it appropriate to designate a longer period within which to take such action on the proposed rule so that it has sufficient time… Accordingly, the Commission, pursuant to Section 19(b)(2) of the Act, designates May 16, 2019, as the date by which the Commission either approves or disapproves.”
 
Indian Apex court differs Crypto Case hearing on request of the Government
The final hearing of the crypto case at the Indian apex court has now been delayed to July on request of the government. According to a local analyst, this step has been taken as India’s general election are approaching and the voting due to take place in seven phases between April 11 and May 19. The results will be announced on May 23. As per law During election time in India, ‘aachar sanhita’ or code of conduct applies. Thereby no new law can be passed which means that the government is not expected to officially announce any regulation regarding cryptos or others.
The post Top Trending Crypto News of the Week: The Bitwise Report, Bithumb, and Bitcoin ETF Among Major Newsmakers appeared first on Coingape.
Source: CoinGape

EOS Slide 4.7 Percent, Prices Reacting to BitHumb Heist?

EOS down 4.7 prices in last day but bullish
Three million EOS are missing from BitHumb’s hot wallets.

$12.5 million worth of BitHumb’s EOS are missing, but other exchanges are taking assisting in recovery. In response, EOS prices are down 4.7 percent in the last day in an adjustment of Mar 28-29 overvaluation.
EOS Price Analysis
Fundamentals
For the second time, BitHumb, the South Korean exchange, which claims to be ISMS certified and applying multi-signature withdrawal scheme is once again a victim of hacking, less than a year after the exchange losing $14 million.
Although it says 3 million EOS worth around $12.5 million at current exchange rates and $6.5 million worth of XRP—20 Million XRP– of their stash are missing, users should breathe a sigh of relief because “member’s asset is under the protection of cold wallet.”
In an explainer, the exchange said they “detected abnormal withdrawal of the company’s cryptocurrency through BitHumb’s abnormal trading monitoring system.” Unfortunately, internal investigations reveal that the “spill” was an “accident involving insiders” which had a cascading effect, inconveniencing customers since the exchange was forced to “delay the cryptocurrency deposit and withdrawal service.” They have since extended their investigation and are collaborating with KISA, Cyber Police Agency, and security companies.

Stolen fund flow analysis :
Majority of the Bithumb stolen EOS are sent to @Exmo_Com @HuobiGlobal @kucoincom @coinswitch @ChangeNOW_io @hitbtc Changley, and a little bit to @binance @hitbtc and BW pic.twitter.com/shT1Ei4uRC
— Dovey Wan (@DoveyWan) March 30, 2019

So far, fund flow indicates that stolen coins are moving through different exchanges including Huobi, Changelly, and ChangeNOW amongst others. But Changelly is assisting BitHumb publishing a statement that it froze 243,000 XRP ($76,000) and 114,000 EOS ($479,000).
Candlestick Arrangement

Despite this stain, EOS prices are trending higher, up 13.7 percent in the last week but sliding by 4.7 percent in the previous day. All the same, EOS is trading within a bullish breakout pattern against the USD. At this pace, we expect prices to edge higher and even expand towards $7.
However, before that prints out, it is likely that there will be a correction of Mar 28—29 overvaluations and as prices dip mirroring today’s losses. While temporary, risk-off traders should take the opportunity to load up on dips with first targets at $7 as bulls confirm gains of Mar 5 further drifting away from Feb 24 highs as buyers flow back.
Nullifying this up-trend are strong prices reversing Mar 27 upswings and even dropping below the middle BB and $3.5. Such a move will trigger liquidation as sellers of Feb 24 flow back with targets at $3 and $2.2.
Technical Indicators
Our anchor bar is wide-ranging Feb 24 bull bar with conspicuous transaction volumes—17 million. Since bulls are yet to reverse Feb 24 losses satisfactorily, any break above Mar 27 must be with high volumes above 17 million validating the double bar bull reversal pattern of Mar 4-5.
Chart courtesy of Trading View
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Source: New feedNewsBTC.com