Bithumb asks users to stop making cryptocurrency deposits owing to external audit

Bithumb, one of South Korea’s leading cryptocurrency exchange platforms, was recently under the spotlight after a hack resulted in the exchange losing a significant amount of funds. The exchange, earlier today, released a statement on its official blog, asking its customers to stop making cryptocurrency deposits.

According to the previous official statement, the hack was an inside job as no external intrusion path was revealed to the exchange. Further, the firm is currently working with KISA, thee cyber police agency, and security companies to investigate the case of stolen funds. Notably, the funds stolen did not belong to the customers, but to the company, and the exchange retained the funds stolen after the hack was first detected.

The update stated,

“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 exchange assured its users that “all the members’ assets” were “under the protection of cold wallet.” The exchange then clarified that they were “planning fair and objective due diligence review” on all the cryptocurrency assets held by them via an external auditing firm. They also stated that suspending deposits and withdrawal service on the platform were “necessary,” as regulatory officials had ordered an “intensive investigation” over the unexpected event.

The blog post read,

“Due to this reason, we ask you to stop making deposits until there is a separate announcement.Please note that deposit will not be processed until the deposit service is resumed.”

However, the exchange did clarify that the suspension of deposit and withdrawal services will only be applicable to the currencies involved in the incident. The service will remain available for all the “newly listed cryptocurrencies.” Further, the platform added that the Korean Won [KRW] services would be functioning normally.

“We will announce it immediately the results of the financial investigation come out, and inform you that there is no problem with the customer’s assets, Bithumb promise once again that we will disclose the findings and the progress of the investigation in a transparent manner.”

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