Bitcoin price plunges after cryptocurrency exchange Coinrail is hacked

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Coinrail, a relatively small exchange but still ranked among the worlds top 100 reported at first that it was reviewing its system due to a "cyber intrusion" and later revealed that $40 million in altcoins had been stolen from user accounts, similar to Japan's Coincheck hack earlier this year. It is estimated the exchange lost over $40 million Dollars in assorted tokens and altcoins.

Korea Internet & Security Agency, now carrying out the investigation with police, said only four of the country's largest exchanges are subject to the Information Security Management System certification (ISMS) requirement. The rest of the coins were then moved to a safe "cold valet", which is disconnected from the internet.

At press time, Coinrail's services are still offline. An investigation is now underway, and trading should resume once executives figure out how to approach the situation.


Bitcoin was one of those affected, falling 10 percent to its lowest price in two months. The cryptocurrency slumped by more than 13 percent Sunday, the biggest intraday drop since February 6, according to data compiled by Bloomberg from Bitstamp pricing.

This could possibly be attributed to subpoenas being issued to four major digital currency exchanges by the Commodity Futures Trading Commission (CFTC). That widens Bitcoin's losses for the year to 53 percent.

So far, the exchanges are refusing to cooperate, saying that the release of such information to the organization would be an infringement of customers' privacy.


Other major cryptocurrencies including ethereum and ripple also tumbled, with about $45 billion wiped off the total crypto-market value in the last 24 hours, according to CoinMarketCap.

Though the exchange is small and even the $40 million is a low number compared with other hacks the carry on effect can be serious.

Is it time for some solid regulation?


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