South Korea’s Youbit announces bankruptcy following 2nd hacking attack this year

While the 1st attack has been linked to North Korea’s spy agency, South Korea’s KISA along with local law enforcement agencies have begun investigating the hack in which 4,000 bitcoins were stolen.

On Tuesday, Youbit, a South Korean cryptocurrency exchange disclosed, it was shutting down for bankruptcy following a second hacking attack this year.

The development underscores and highlights security concerns for investors who trade in the bitcoin and other virtual currencies.

Youbit had been successfully hacked in April 2017 and lost nearly 4,000 bitcoins in an attack that has been linked to North Korea’s spy agency, as per a South Korean newspaper report.

On Tuesday, Youbit stated on its website that it had been hacked at 4:35am local time, causing a loss of 17% of its total assets.

The firm did not put a figure on the loss but stated of its customers’ cryptocurrency assets will be marked down to 75% of its value; further, it has stopped trading and will work to minimize losses for its customers.

Youbit is a smaller player in South Korea’s cryptocurrency market, with the world’s busiest cryptocurrency exchange Bithumb accounting for about 70% of the country’s market share.

As per Korea Internet & Security Agency (KISA), South Korea’s state agency which responds to cyberattacks, its officials and the police will begin an investigation into the hacking incident.

According to cyber security experts, electronic wallets and bitcoin exchanges have a history of being targeted. With a rise in their valuation they tend to attract cyber crime.

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