Cryptocurrency exchange attacked by hackers fined for lax security

All News 17:50 February 12, 2020

SEOUL, Feb. 12 (Yonhap) -- A major cryptocurrency exchange in South Korea was fined Wednesday for failing to protect against cyberattacks that led to massive thefts of customer information and virtual coins.

A Seoul court fined the company, Bithumb, and a former senior official identified by the surname Lee, who is believed to be its largest shareholder, 30 million won (US$25,452) each for neglecting their duty to ensure online security.

In April 2017, about 31,000 pieces of personal information of Bithumb's customers were leaked after a cyberattack that exploited Lee's personal computer. An investigation found his device was devoid of protection against malicious programs.

Between May and October of the same year, hackers stole about 7 billion won worth of cryptocurrencies owned by 243 of its customers.

The company was found to have failed to take proper measures despite a number of suspicious accesses to its systems and customer reports of possible cyberattacks.

The defendants were indicted in June last year without physical detention.