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Korean crypto exchange Youbit hacked again, files for bankruptcy

 Youbit, a relatively small South Korean cryptocurrency exchange, announced it was hacked and has lost 17% of its coins, stored in the online hot wallet. This has made the owner company Yaffian Co. to halt operations on the exchange and file for bankruptcy.

 

This is the second time in 2017 Youbit was hacked, after in April thieves made off with over 4000 bitcoins. After the first attack the exchange took measures to improve security, but has obviously fallen prey to the hackers once more. Now the sum is yet undisclosed, but the company says it is smaller than in the first heist.

 

According to the announcement, Youbit has marked down customer assets to 75% of their market value and has arranged for the immediate refund to the clients. The rest will be returned whenever the bankruptcy procedure is completed and the company assets are liquidated.

 

According to Reuters, citing an official at the Korea Internet & Security Agency (KISA), the state agency that responds to cyberattacks, said the police and KISA officials were starting an investigation into the hacking.

 

Most likely the bankruptcy of Youbit will not have a major effect on the cryptocurrency market, despite South Korea being a major market, as the exchange was relatively small. In comparison, the exchange Bithumb holds around 70% share of the country’s crypto market.

 

Youbit’s hack is by far not the first time a cryptocurrency exchange was hacked, nor it will be last. So far the largest “disasters” to befall the industry were the hacks of Mt. Gox in 2014 and Bitfinex in 2016.

 

TAGS: youbit  hack  bankruptcy  south korea  bitcoin 

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