South Korea Cryptocurrecy Exchange Goes bankrupt After Suffering Second Major Hack

Pappi Hex

The huge value of cryptocurrency --- most especially bitcoin, has drawn the attention of cyber-criminals who sees it as a profitable niche to earn from through illicit means.

South Korea cryptocurrency exchange Youbit has been forced to shut down after suffering a major cyber-attack for the second time this year within a span of eight months. This is the first time a Korean cryptocurrecny exchange would go bankrupt.

The company which had lost nearly 4,000 bitcoin in the first attack which at that time was valued at 5.5 billion won ($5 million) and nearly 40% of the exchange total assets, declared itself bankrupt on Tuesday after it announced that it had lost 17% of its asset.

"We will close all trades, suspends all deposits or withdrawals and take steps for bankruptcy," the company said in a statement .

The company would mark down by 25% all clients crypto-currency so as to minimize the losses and impact of the hack. Insurance and sell of the remains of the firm should make up the remaining balance to settle clients.

 The South Korean crypto-market is one of the most active for virtual currency with about 1 million South Korean investors whose trades accounts for around 20% of the global bitcoin transactions. The rush for bitcoin in South Korea is so strong that the price of a bitcoin lies 20% higher when compared to the US, its biggest market.

 Security researchers from different firms have blamed attacks on crypto exchanges on North Korea.

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