Police have begun an investigation, according to the Korea Herald, which cited a spokesperson as saying: "We secured the access history of Coinrail servers and we are in the process of analysing them".
While the bitcoin price did experience a small decline in the immediate aftermath of the report that an exchange had been hacked, Greenspan noted that the bulk of the decline came more than 15 hours later and that the scale of the pullback was entirely disproportionate to both the size of the hack and Coinrail's significance in the cryptocurrency ecosystem.
The price of Ethereum also fell 9.14 percent to reach 570,000 won and Ripple dropped 9.34 percent to 640 won. The crash widens bitcoin's year-to-date losses to as much as 50%, wiping about $120 billion off its market value this year.
The cryptocurrency slumped by more than 13 percent Sunday, the biggest intraday drop since February 6, according to data compiled by Bloomberg from Bitstamp pricing. The company wasn't immediately available for further comments. "It may take around a month to accurately figure out the causes", said a spokesperson of KISA. South Korea has been the third largest market for Bitcoin trading in the world after Japan and the USA and has also suffered several major exchange hacks resulting in both fear driven activity on the trading side and calls for more stringent regulation from the government.More news: Google Promises Its A.I. Will Not Be Used for Weapons
Accorgint to Coinrail, the hackers struck on June 10 and made away with a number of different cryptocoins, including the recently launched Pundi X (NPXS), which makes roughly two thirds of Coinrail's trading volume.
Korea Internet & Security Agency, now carrying out the investigation with police, said only four of the country's largest exchanges are subject to the Information Security Management System certification (ISMS) requirement.
The Coinrail incident is not the first hacking attack in Korea.