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Latest Bitcoin Theft Bankrupts South Korean Cryptocurrency Exchange

Another day, another stolen bitcoin.

It’s barely been a month since hackers took $77 million from a Slovenian company in a single hit and now there’s news of another digital heist.

Easy money

South Korean cryptocurrency exchange Youbit is the latest victim of the lucrative cyber crime which has resulted in the company filing for bankruptcy after its second breach this year. According to Reuters, the exchange was first attacked in April where almost 4,000 bitcoins went missing. South Korean authorities at the time accused North Korean hackers.

The latest theft has officially sent Youbit out of business with hackers successfully breaching the exchange’s hot wallet and taking 17 percent of its bitcoin reserves in the process. According to Youbit, security had already been beefed up after the first attack whilst the remaining 83 percent of the exchange’s funds were moved into a cold wallet.

Regardless of these measures the company still filed for bankruptcy on Tuesday and has officially ceased all trading on its platform. The downside to all of this? Youbit has had to mark down customer assets to 75 percent of their market value with customers being able to withdraw their bitcoin effective immediately.

The remaining value of the stolen bitcoin will be reimbursed to customers once the bankruptcy and insurance proceedings have concluded.

It’s important to note that Youbit was just a small exchange that handled small volumes in South Korea’s surging bitcoin scene. In essence, it’s collapse will have little effect on the wider bitcoin economy however it does still highlight the current security flaws regarding cryptocurrency.

Want to know where your cryptocurrency is being kept? Here’s a look inside an Israeli bitcoin miner.


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