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Cryptocurrency market falls: another crypto exchange has been hacked

South Korean cryptocurrency exchange Coinrail said it was hacked over the weekend.

On Monday, Coinrail said its system was hit by «cyber intrusion» on Sunday, causing a loss for about 30% of the coins traded on the exchange. Coinrail did not quantify its value, but in an unsourced report local news outlet Yonhap news estimated that about 40 billion won ($37,28 million) worth of virtual coins were stolen.

Amid the heist at Coinrail, a relatively small South Korean cryptocurrency exchange, cryptocurrency market has dropped significantly. Bitcoin is down by 6,49% and is trading at $6 795,14, Ethereum is trading at $533,44 (-6,24% in a 24-hour period), EOS is down by 14,72% and is trading at $11,21. Total market capitalization is $296 467 000 000 USD at press time.

Global policy makers have warned investors to be cautious in trading the cryptocurrency given the lack of broad regulatory oversight. Kim Jin-Hwa, a representative at Korea Blockchain Industry Association, said:

«Coinrail is not a member of the group that promotes self regulations to enhance security. It is a minor player in the market and I can see how such small exchanges with lower standards on security level can be exposed to more risks».

Coinrail said the balance 70% of virtual coins are now secure in its “cold wallet”, which operates on platforms not directly connected to the internet.

Korea Internet & Security Agency, currently carrying out the investigation with police, said only 4 of the country’s largest exchanges are subject to the Information Security Management System certification (ISMS) requirement.

Coinrail, as of June this year, hasn’t been certified with the ISMS.

Coinrail said it is fully cooperating with a police investigation into the hacking, and that trading has been suspended for now.