Changelly And Bithumb Collaborate To Retrieve 1 Million XRP From Recent Hack

On October 26th, 2018, the press was informed that the Hong Kong-based crypto exchanger service Changelly managed to retrieve 1,063,500 XRP tokens stolen during the June hack of South Korean exchange Bithumb.

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On October 26th, 2018, the press was informed that the Hong Kong-based crypto exchanger service Changelly managed to retrieve 1,063,500 XRP tokens stolen during the June hack of South Korean exchange Bithumb.

Changelly was ready to help

According to Changelly’s CEO, Ilya Bere, his company was quick to cooperate with Bithumb and the South Korean police in the investigation.

By hastily implementing the latest Anti-Money Laundering (AML) procedures on addresses recognized by Bithumb to be malicious, Changelly prevented transactions from going through their application program interface (API).

Analogically, Changelly’s investigators were able to confiscate and secure a significant amount of XRP cryptocurrency with a questionable origin.

According to the press release, the XRP recovered by the collaborating parties was worth approximately $585,000 at the time of the attack and about $475,000 at press time.

$14.5 million worth of crypto rescued through the industry-wide commitment

This is not the first case when Bithumb’s willingness to seek aid produced results after the hack that lost over $30 million of their users’ funds.

Collaborating with other cryptocurrency trading platforms, Bithumb managed to salvage around $14 million of stolen assets, which, added to the recent retrieval, comes close to a 50% recovery rate, which is unprecedented in the cryptocurrency business and sets a certain standard when such unfortunate events are concerned.

Changelly CEO added that the collaboration of two companies could serve as an example of industry-wide commitment:

“This case sets a precedent for how the joint work of the key players in the cryptocurrency market can positively affect the industry, bringing security improvements to the crypto-trading projects,”

Not only XRP was affected

Even though the XRP was salvaged, the total of 11 cryptocurrencies was affected by the malicious attack.

It was reported that 2,016 BTC, worth approximately $12 million at the time, disappeared from the exchanges hot wallets before Bithumb’s security experts raised the alarm and moved their clients’ funds into the cold storage.

Ether (ETH), Bitcoin Cash (BCH), Aelf (ELF), Golem (GNT), and Kyber Network (KNC) tokens were also among the targeted assets, and it is yet to be reported how much of each cryptocurrency Bithumb managed to bring back to their rightful owners.

Joint security

The example of Changelly and Bithumb working together to patch the security breach is, indeed, a fine example of the collaboration for the greater good.

If companies who would otherwise be considered as rivals can make a joint effort to decrease the negative effect of the second largest hack in 2018, then there is hope for exchanges to become more secure and trustworthy centers of cryptocurrency business after all.

Knowing that the very foundations of blockchain and cryptocurrency industry are open source codes, we hope that this example can incentivize other similar companies to share their research and technology in order to prevent these kinds of events, and achieve a more secure environment from the end consumer of their services.

By doing so, problematic centralized trading platforms would also prolong their domination over the market.

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