“Hacked”: Five South Korean Bitcoin Exchanges Fail Security Test

MBC, a South Korean media outlet, has employed the services of a security firm to test the security system of “five Korean Bitcoin exchanges” which include Bithumb. The said security firm has allegedly been successful in hacking all five of the targeted setup, being able to access user data and funds.

As the media outlet stated in an article, MBC made public about its exploits today that supposed hackers it hired were able to breach security procedures using what according to them are “basic tools.”

If proven true, the test gives emphasis to the dubious nature of many users’ cryptocurrency security setup, including settings for exchanges themselves, as large-scale thefts continue.

Just this week, South Korean exchange Youbit declared that it will be filing for bankruptcy after being hit with two hacking attacks this year, the second of which resulted into a 17% loss of its net assets.

It is still not made known whether Youbit is one of the five exchanges targeted by MBC’s experiment which show workers put up their own accounts which they then compromised. On the other hand, it has been reported that the nation’s biggest exchange, Bithumb was successfully hacked during the test.

Bithumb has also been a victim of major security breaches in the past months with wicked entities obtaining access to funds and sensitive user account data.

As part of the staged hacking, MBC alternate gained “user IDs and passwords” and even outsmarted two-factor authentication.

“The wallet was penetrated without difficulty,” the article states. “The key to your wallet, ID and password was exposed.”

Different speculations have floated regarding the country’s exchange hacking issues, with North Korea increasingly being suspected as a major perpetrator of cybercrime in order to steal cryptocurrencies.

The report added that MBC has “contacted the South Korean government” before publishing its article, in order to inform it about the grave security issues of local exchanges.  Government officials have yet to respond to the MBC investigation.