Security errors led to bithumb hacking – employees guilty

A court in South Korea has found a senior employee of the Bithumb crypto exchange guilty of violating the Internet security law. The judge found that the employee’s actions led to a hack in 2017 in which a robber took personal data from 31,000 customers – and also found the exchange’s operator, Bithumb Korea, guilty of violating the security law.

According to Hankook Ilbo, after the security breach, a thief was able to make off with the login data and passwords of customers with crypto-currency stocks worth around 6 million US dollars.

The public prosecutor’s office sought to bring charges against an individual employee of the exchange, who was believed to have made important errors in connection with the security protocol.

The court ruled that a 48-year-old man, known only by his last name Lee, had failed to install anti-virus software on his workstation PC and that he had not encrypted customer data.

The judge added that Bithumb Korea had also failed to act quickly and decisively to stop the hacks and had done too little to prevent possible follow-up attacks.

Lee was fined a maximum of over $25,000.

Police successfully tracked down the hacker after the 2017 raid, and a court later sentenced him to three years in prison.

Meanwhile, the latest Cipher Trace Cryptocurrency Anti-Money Laundering report found that “losses due to fraud, embezzlement of funds, currency hacks and theft totaled $4.5 billion in 2019.

But although losses from fraud and embezzlement related to crypto have increased by 533% in the last year, it seems that stock exchanges are finally strengthening their security systems to keep cyber criminals out: Hacks and thefts are down 66% in 2019.