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Bitpoint Reveals Amounts Stolen, Pledging to Reimburse Users in Crypto

Japanese exchange Bitpoint has published the breakdown of crypto assets stolen in the $27.8 million hack of its platform earlier this month.

Japanese exchange Bitpoint has published the breakdown of crypto assets stolen in the ¥3 billion (~$27.8 million) hack of its platform earlier this month.

A document published by Bitpoint’s parent firm Remix Point Inc. on July 16 reveals that five crypto assets in total were stolen by the attackers. The breakdown provided by the company compares the proportion of stolen customer assets with assets belonging to the firm:

  • 1,225 Bitcoin (BTC) worth ¥15.3 billion — ¥1.28 billion belonging to customers and ¥250 million to the firm; 
  • 1,985 Bitcoin Cash (BCH) worth ¥70 million — ¥40 million (customers) and ¥0.2 billion (firm);
  • 11,169 Ether (ETH) worth ¥330 million — ¥240 million (customers) and ¥0.8 billion (firm); 
  • 5,108 Litecoin (LTC) — ¥0.5 billion, of which ¥40 million (customers) and ¥0.0 billion (firm); 28,106,323 XRP — ¥10.02 billion, of which ¥2.6 billion (customers) and ¥960 million (firm).

Out of the ¥3.02 billion stolen in cryptocurrencies overall, ¥2.6 billion belonged to customers and ¥960 million were company assets. XRP accounted for the highest share of total losses, with stolen XRP accounting for over ¥10 billion — roughly a third of the lost funds.

Bitpoint has moreover revealed its plans to compensate customers in cryptocurrencies rather than in their equivalent fiat value.

The exchange reiterates its belief that the breach occurred due to unauthorized access to the private keys of its hot wallets, and that it now plans to move all holdings into cold storage. 

It confirms that no breach of its cold wallets has been detected, but states that it continues to monitor the situation and is also suspending all services until more comprehensive security measures have been undertaken and the firm has completed its tracking of the stolen funds.

The document reveals that Bitpoint is cooperating with the Japan Virtual Currency Exchange Association (JVCEA) — a self-regulatory crypto exchange association that formed in March 2018 to help establish industry-wide investor protection standards — and has requested that the association monitor any suspected ill-gotten funds and wallets potentially associated with the incident. The exchange is also reportedly in close communication with the Ripple Foundation.

As reported yesterday, Bitpoint discovered over 250 million yen ($2.3 million) in crypto that was stolen during the hack, bringing the total sum of lost funds down to its initial estimate of ¥3.5 billion ($32 million) to ¥3.02 billion ($28 million).

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Singaporean Exchange Bitrue Gets Hacked, Losing $5 Million in XRP, Cardano

Singapore-based cryptocurrency exchange Bitrue has suffered a major hack, losing 9.3 million XRP and 2.5 million cardano (ADA) from its hot wallet.

Singapore-based crypto exchange Bitrue has suffered a major hack, losing 9.3 million XRP and 2.5 million cardano (ADA) from its hot wallet. The news was revealed in an official statement from the exchange published as a twitter thread on June 26.

At the time of the breach — 1 a.m. GMT+8 June 27 — the stolen funds would have been worth over $4.5 million in XRP (valued at $0.488) and $237,500 in ADA (valued at $0.095), according to CoinMarketCap data.

The exchange states that a purportedly single hacker first “exploited a vulnerability in our Risk Control team’s 2nd review process to access the personal funds of about 90 Bitrue users,” subsequently using this first experience to access the exchange’s hot wallet and steal the cryptocurrency. 

According to Bitrue, the attack was swiftly detected and the hacker’s activity suspended by the exchange. Bitrue reportedly notified the receiving exchanges of the incoming ill-gotten funds — specifically Huobi, Bittrex and ChangeNOW — whom it credits with helping to freeze the relevant transactions and accounts.

The statement assures exchange users that “their personal funds are insured,” and that all those “affected by this breach will have their funds replaced by us as soon as possible.”

Currently, Bitrue says it is conducting an emergency inspection of the platform and aims to return to live service functionality as soon as possible — with log-in and trading support expected to relaunch sooner than withdrawals, which will remain offline for a longer period.

Bitrue provides the public with a link to trace the flow of funds on the XRP block explorer, and also states that it has contacted the Singaporean authorities to seek help in identifying the perpetrator.

An update is expected from the exchange once more has been learned of the incident.

Just this week, two Israeli brothers were arrested in connection with the 2016 hack of crypto exchange Bitfinex and other crypto-related phishing attacks.

The $40 million hack of top crypto exchange Binance has loomed large over the industry this year — a reported total of seven crypto exchanges suffered large-scale hacking attacks prior to Bitrue in the first six months of 2019.

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19% of World Population Bought Crypto Before 2019: Kaspersky Report

Cybersecurity firm Kaspersky released a survey revealing that only 10% of global consumers “fully understand how cryptocurrencies work.”

A new survey by Moscow-based cybersecurity firm Kaspersky Lab introduced on June 17th revealed that 19% of people globally have purchased cryptocurrency.

The survey, titled “The Kaspersky Cryptocurrency Report 2019,” was carried out in October and November 2018, with a total of 13,434 respondents in 22 countries.

According to the report, 81% of global population have never purchased cryptocurrencies, while only 10% of respondents said they “fully understand how cryptocurrencies work.”

Meanwhile, just 14% of those who haven’t ever used cryptocurrencies would like to do so in the future, the report notes.

Key findings of The Kaspersky Cryptocurrency Report 2019. Source: Kaspersky Labs

Key findings of The Kaspersky Cryptocurrency Report 2019. Source: Kaspersky Labs

Among major reasons why global crypto investors have stopped using cryptocurrencies, majority of respondents cited its “too high” volatility, implying that the need of stability before they are prepared to use them.

While volatility factor accounted for 31%, other important reasons included loss of money in the bear market, as well as a belief that crypto “is not profitable anymore,” with both factors equally amounted to 23% among the respondents.

With that, 22% of respondents claimed that they stopped using cryptos because they are not backed with real assets. Additionally, hacks and fraud vulnerabilities weren’t the biggest reasons for global crypto users becoming disillusioned, with the respondents citing those factors accounted for only 19% and 15%, respectively.

Reasons why people stopped using cryptos. Source: Kaspersky Labs

Reasons why people stopped using cryptos. Source: Kaspersky Labs

In a press release accompanying the report, Kaspersky team noted that the adoption of crypto industry by global consumers have been slowing down due to lack a proper understanding of how cryptocurrencies work.

Previously, another survey found that almost 12% of American crypto crypto holders are long-term investors