South Korea’s Largest Bitcoin Exchange Compensates $3 Million to Users as Apology
Bithumb, South Korea’s leading digital currency exchange and the world’s fourth largest bitcoin exchange, is taking all of the appropriate steps to deal with the recent hacking attack.
In late June, Bithumb fell victim to a major hacking attack, which led to the loss of customer funds stored in bitcoin, Litecoin, Ethereum Classic, and Ethereum. According to latest reports from Bithumb, around $900,000 was stolen from an unknown group of hackers.
More to that, personal information of 30,000 users, approximately 3 percent of Bithumb’s user base, was stolen from an employee PC, which was not protected with appropriate and necessary security systems and measures.
In previous announcements, Bithumb reassured its users that all losses will be handled with company profits and funds. Because the size of the losses was not as large as some of the other hacking attacks suffered by major bitcoin exchanges such as Bitfinex, the company explained that it will be able to compensate users with existing company funds.
For the 30,000 users that had their personal information compromised from the hacking attack, Bithumb compensated $90 per user, spending nearly $3 million to compensate its users. In essence, Bithumb did not have to and was not required to compensate users for the theft of personal information. But, in order to secure trust between the company and its clients, the company decided to spend $3 million, which is more than 3 times larger than the compensation for the theft of customer funds.
Bithumb said in an announcement:
“We have completed the compensation for all accounts that had personal information compromised in the recent hacking attack. More importantly, any additional damage resulted from the hacking attack will be fully compensated by Bithumb. We apologize once again to our customers and we want to express our appreciation to customers that continue to trust Bithumb.”
Additionally, in a recent announcement, Bithumb revealed that the company is collaborating with various cyber security and law enforcement agencies including the Korea Internet & Security Agency (KISA) to investigate into the hack and prevent additional losses and hacking attacks.
Almost immediately after the hacking attack or security breach was discovered, the Bithumb team temporarily suspended withdrawals on affected accounts to stop further losses and damage.
Ever since its launch, Bithumb has guaranteed users a 24/7 customer support through live phone lines and live chat. In US and Europe, the vast majority of bitcoin exchanges do not offer such efficient customer support services. In fact, Coinbase, the world’s largest bitcoin wallet platform and the operator of leading digital currency exchange GDAX, is frequently criticized for its poor customer support, which only handles support tickets by email and Twitter, which are often left unanswered for weeks.
To respond in a more timely manner to users that have lost funds or had their personal information compromised in the recent hacking attack, Bithumb expanded its customer support service.
Bithumb also revealed that it appointed experienced customer support experts from the industry of e-commerce, IT and finance to bring optimal customer service to its clients.