Last week, approximately $31 million (roughly 35 billion Korean Won) was stolen by hackers from the South Korean-based exchange Bithumb, one of the most significant Crypto Currency exchanges on the planet by trading capacity and the Bithumb hack was connected to a Darknet bitcoin tumbling service Bitblender.
While Bithumb officially validated the violation early Wednesday morning regional time, it seems like security issues were at that time attracting attention from the exchange at minimum several days earlier.
This incident could be an organized crime and some alleged that the hack was a conspiracy through Bithumb to create funds or to prevent tax obligations. The funds, as a result, were probably reused immediately with Bitblender, one of the most popular bitcoin mixers found on the dark web. This was the fastest way to launder the bitcoin funds and redistribute them to anonymous bitcoin wallet around the world.
This occurrence caused the Cryptocurrency Resolution Trust to open a lawsuit against the founder of Bitblender, which is unregulated and deemed internationally illegal. To learn more about BTC mixers and tumblers check out the chart and reviews of various options.
The Cryptocurrency Resolution Trust has filed the case also against the British India Ocean Territory (BIOT) which they claim possesses the power or right to exercise authority over the Bitblender.io.
Attorney Levy who is the legal representative for The Crypto-Currency Resolution Trust has also frequently notified British Indian Ocean Territory about the outcome but to no avail.
The whois reports for Bitblender which is employed to reveal Japan’s Anonymousnesspeech as the registrant institution for Bitblender has been outed recently this week to have no registrant, an apparent infringement of ICANN policies which allegedly could indeed not occur if a leading domain is provided accordingly. The .IO is the domain that is optional, not entirely for Digital Currency as well as ICOs but additionally for HYIPs, frauds, and Ponzi schemes because of the lenient policy by the British governments.
Bitblender.io boasts to be the best Bitcoin Mixer on the Darknet as well as asserts to utilize smart technology to get rid of Bitcoin history and also make transactions anonymous so as to effectively launder money.
The Bitblender site supplies guidelines on ways to access the darknet marketplaces as well as launder Bitcoins. In accordance with Dr. Levy’s statement, “the problem is rather straightforward Bitblender makes the laundering of Bitcoins accessible for criminals with the use .io domain as its only public address.”
Information gathered from Yonhap revealed that Bithumb intensified its security measures by carrying out supposed “5.5.7 policies” last month. Perhaps an insider hack was brewing. However, there is no evidence to support this yet.
Immediately after publishing the statement of the hack, Bithumb consented to repay victims by making use of its reserves, which is 100,000 Korean Won each, or an amount equaling less than $90 USD per account victim.
Meanwhile, the establishment had relocated the remaining assets to be kept in an extra safe setting that is not readily accessible through the internet. Bithumb said financiers ought to “immediately cease transferring cryptocurrencies until further notice.”
In spite of all this bad press, there is still an ounce of optimism left, perhaps a brighter future. Litecoin creator Brian Lee went on record immediately after the hack suggesting things will be okay. “We are very early still in the crypto time frame…so right now we are getting better but there is a lot to improve upon,” he said regarding investment protection. “This is a paradigm shift, because you are responsible for your own money, whereas the exchange holds the money for you and you need to protect your own coins with respect to cryptocurrency. It’s advisable to withdraw straight after investing,” he added.
BitBlender’s last official tweet was on May 29, 2018, almost a month before the hack.
More tips on staying anonymous when mixing bitcoin on https://t.co/SB8m7hgILe
— BitBlender (@_BitBlender_) May 29, 2018