Bithumb had managed to preempt what it interpreted as an imminent attack on its server by moving a large number of cryptocurrencies to its cold wallet after noticing the "number of unusual access attempts" had increased, which led it to "strengthening security".
In a notice posted on its website on Wednesday that it had stopped all trading and stored "all clients" assets in safe cold wallets' which are stored on platforms not directly connected to the internet.
It added that the company would fully compensate customers.
Some users reported on cryptocurrency-focused forums that they were missing Ripple (RPX) from their accounts, but this information was never confirmed by the exchange.
While most experts in South Korea believe that all local cryptocurrency exchanges are hackable and vulnerable to security breaches, there exists quite a few cryptocurrency trading platforms that have operated more than five years with a clean record and no signs of breach. Bitcoin fell around 2%. Right now we have already saw a small dip as the price currently sits around $6,600 as the announcement about the Bithumb cryptocurrency hack was just made almost 30-40 minutes ago upon writing.
Before the Bithumb hack, the market appeared to be recovering as it gained more than $12 billion in total market capitalization.
Hackers have made off with 35bn won (£24m) worth of cryptocurrency.
According to Chosun, a mainstream media outlet in South Korea, local security experts have told the publication that hackers can breach into local cryptocurrency exchanges easily if they allocate sufficient resources to it.