Korean cryptocurrency exchange Coinrail suffered USD $ 40 million theft

South Korea's cryptocurrency exchange, Coinrail, said it was the victim of an attack on Sunday, with reported losses of around 40 billion won (USD $ 37.2 million) in cryptocurrencies.

In a blog post on Monday, Coinrail confirmed that it suspended its services after a "cybernetic intrusion" into its systems on Sunday morning.

Without disclosing the exact amounts stolen, Coinrail indicated some of the stolen ERC-20 tokens. These are the NPXS tokens of Pundi X, a paid project; Aston X ATC, a decentralized document project; and NPER tokens of the decentralized IP project of the same name.

The strongest blow was taken by Pundi X, who said that the hackers took a total of 2,619,542,080 NPXS tokens, approximately USD $ 19.5 million at the time of the theft.

Data from a wallet address allegedly associated with the hacker also point to 93 million in ATX tokens (approximately USD $ 13.8 million) and 831 million DENT coins (almost USD $ 6 million in securities), as well as an amount of other project tokens that include Jibrel Network, Storm, Kyber Network, B2BCoin and more than USD $ 1 million in Tron TRX tokens. The total value of the stolen tokens at the time of the theft exceeded USD $ 40 million.

The Coinmarketcap data indicates that Coinrail was located yesterday at number 90 as the largest crypto trading platform in the world.

Since then, the hacker has washed some of the 2.6 trillion NPXS tokens in an attempt to sell 26 million coins in IDEX, the decentralized ERC-20 exchange, as revealed by the transaction data. IDEX froze those currencies before they were liquidated, confirmed Pundi X and added that he also instigated his own 'emergency security protocol' to stop all NPSX transactions at noon on Sunday to investigate the theft of coins equivalent to 3 percent of all your current supply. Other tokens stolen in different values have also been sent to another decentralized EtherDelta exchange, revealed by the etherscan.io data.

Coinrail maintains that 70% of its total reserves of coins have been transferred to a cold wallet without connection and remain secure. Two-thirds of the remaining 30 percent of the committed token has been frozen or withdrawn through consultations with developers such as Pundi X and communication with exchanges such as IDEX, the operator said.

Coinrail added:

The remaining third of the currencies are being researched with relevant exchanges, researchers and coin developers. "

In a statement, a representative of the Korea Blockchain Industry Association, a self-regulatory group, revealed that the exchange was not a member of the working group.

As reported by Reuters, the representative of the exchange, Kim Jin-Hwa, stated:

Coinrail is not a member of the group that promotes self-regulation to improve safety. It is a minor player in the market and I can see how those small exchanges with lower standards in the security level can be exposed to more risks. "