Prabang pledges compensation after hot-wallet breach
Key points
- South Korean cryptocurrency exchange Prabang has pledged to compensate users after a hot-wallet breach reportedly caused losses of about ₩100 million.
- The incident occurred on 24 October and involved unauthorised withdrawals from the exchange’s hot wallet.
- The breach adds to scrutiny of cryptocurrency exchange security and the protection of customer assets.
Prabang, a South Korean cryptocurrency exchange, has pledged to compensate users after a hot-wallet breach reportedly caused losses of approximately ₩100 million, according to Newsis.
The exchange detected abnormal withdrawals on 24 October and activated its emergency response system.
A system-wide inspection identified a security vulnerability, prompting Prabang to suspend services to protect customer assets.
Prabang has committed to reimbursing affected users fully with company funds once investigators confirm the final losses.
The exchange has reported the incident to relevant authorities as it investigates the cause and scope of the breach.
The incident adds to security concerns in South Korea’s cryptocurrency sector, where regulators have also identified breaches involving Streami, the operator of Gopax.
Prabang has pledged to strengthen its security systems and provide customers with further updates as the investigation progresses.
The exchange’s immediate priorities are to establish the final losses, compensate affected users and determine when services can resume.
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