‘My Coins Vanished Without Me Knowing’: About $72,000 Stolen From Pravang Exchange Leaves Users Reeling - bloomingbit

The theft marks a concerning shift in cyberattacks targeting South Korea's financial sector, as hackers have moved beyond data breaches to directly steal customer assets. Pravang, a crypto-only exchange, revealed that an unauthorized external party withdrew approximately 100 million won ($72,000) from its internet-connected hot wallet on October 24.

This incident follows an earlier security breach at Pravang this month that exposed personal information. The exchange has announced plans to determine the exact loss amount and fully compensate affected customers, though the specific route used in the hack remains unidentified.

Hot Wallet Vulnerability

A hot wallet operates in an internet-connected environment to facilitate quick crypto transactions, making it more vulnerable to cyberattacks than cold wallets, which remain offline. If wallet management access permissions or transaction approval procedures are compromised, attackers can redirect digital assets to external addresses.

Broader Security Concerns

Larger exchanges are also facing security challenges. Bithumb, South Korea's second-largest crypto exchange, reported on October 28 that unauthorized access to its internal mobile groupware system exposed personal information. While separate from wallet systems, such breaches can provide hackers with credentials for follow-on attacks.

Security experts emphasize that blocking initial intrusions is only part of the solution, as identifying traces within internal systems is equally critical.

Kwak Jin, a cybersecurity professor at Ajou University, stressed the importance of checking for malware and compromised privileges, suggesting companies should strengthen administrator access controls to prevent lateral movement within compromised networks.