YouBit, South Korea’s bitcoin exchange, was hacked and announcing bankruptcy
According to a Reuters report on December 19, Youbit, the South Korean cryptocurrency exchange, announced on Tuesday that it will close and file for bankruptcy after this year’s second hacking. With the rapid growth of transactions in bitcoin and other virtual currencies, security issues have become increasingly prominent. According to South Korean media reports, Youbit was hacked last April. At that time, Youbit lost nearly 4,000 bitcoins in a cyber attack. South Korean intelligence believes that this cyber attack is related to North Korea.
Youbit announced on its website: The exchange was invaded at 4:35 a.m. on Tuesday (3:35 p.m. GMT), resulting in a loss of 17% of its total assets . However, although Youbit did not specifically disclose the amount of the loss, it said that all clients’ virtual currency asset values will be written down to 75% of their original value and the transaction will be stopped in an effort to minimize customer losses.
In South Korea’s cryptocurrency market, Youbit is a smaller exchange. By contrast, Bithumb, the busiest cryptocurrency exchange in the world, accounts for about 70% of Korea’s cryptocurrency market. Officials at South Korea’s Internet Kinetics Institute (KISA) said it has started a police investigation into the invasion. Korea Internet Promotion Agency is responsible for handling cyber attacks.
Bitcoin exchanges and Bitcoin wallets are often the targets of hacking. Security experts say it is more vulnerable to cybercrime attacks as bitcoin prices rise. As of 7:03 GMT Tuesday (15:03 GMT Tuesday), bitcoin at Bitstamp on the Luxembourg Exchange traded at a record high of $ 18,759.67, a record high.