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Coinrail: $40 Million Lost in Crypto Exchange Hack Attack

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South Korean cryptocurrency exchange Coinrail was hacked yesterday, according to an announcement on the official website. 70% of the cryptocurrencies on the platform are safe, two thirds of the coins are frozen and one third has been completely lost.

Coinrail has shifted all of the coins to a cold wallet while Korean National Police Agency investigates the rest of the situation. The exchange wrote that users will be updated with the latest information as soon as possible.

Blockchain service Pundi X published a post on Medium explaining that the company was going to help Coinrail with the attack. Around 2.6 billion NPXS coins were transferred to the Ethereum decentralized exchange IDEX. Both Conrail and Pundi X requested that IDEX freeze these coins to reduce any further damage. The address used in this hack is namedFake_Phishing1432.

Korean police reached out to Pundi X and asked them to “hold onto the tokens that were hacked from the Coinrail accounts in order to protect NPXS Korean holders’ assets.”

Crypto users quickly connected this situation to the fact that cryptocurrency prices dropped at the same time as the hacking incident. All the top 10 cryptocurrencies are currently in the red, as shown on Coinmarketcap. EOS suffered the most as it dropped by a staggering 15% in the last 24 hours, followed by TRON, which decreased by 11%.

Bitcoin, Ethereum and Ripple showed a 6% decline – at the time of writing BTC, ETH and XRP are valued at $6,816, $533 and $0.58 respectively. While it isn’t clear whether the Coinrail hack triggered the drop in crypto prices or not, the values have taken everyone by surprise. Bitcoin was priced close to $8,800 in May, however, it started dropping to $7,500 over a period of 3 days. Up until yesterday, the price appeared to have stabilized and had even showed signs of improvement though.

After this shocking change in prices, the total crypto market capitalization is $297 billion – a $100 billion decline since May 15th.

Image Credit: Deposit Photos

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