Youbit South Korean cryptocurrency exchange to close after second hack

South Korean cryptocurrency exchange Youbit announced on December 19 that it will shut down following a second hack in the past year.


Boom in cryptocurrencies also means hackers are looking for every chance. And they took off with 17 percent of the exchange’s assets in the second raid. The South Korea’s Internet and Security Agency is investigating the hacking case and it is not known how the hackers accessing company vaults.

The company said it will allow users to make partial withdrawals — namely 75 percent withdrawals. This will allow long-term investors to retain a sizeable share of profits. The company said the rest of the assets not stolen were in a “cold wallet.”

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The company said,

“To minimize the damages to our customers, we will allow them to withdraw about 75 percent of their balance”.

The company said it will update customers about the situation even as the investigation continues. South Korea Internet and Security Agency blamed cyber-spies working for North Korea. Earlier attacks on Bithumb and Coinis exchanges were also blaming on the regime.

Previously known as Yapizon, the exchange lost 4,000 Bitcoins in an April attack. The exchange is one of the smaller exchanges in the country. Bithumb exchange is largest with a 70% market share.

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With increasing cyberattacks, hackers are also developing website scripts that turn visiting devices into silent mining agents.

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Elena R

Elena is an expert in technical analysis and risk management in cryptocurrency market. She has 10+year experience in writing - accordingly she is avid journalists with a passion towards researching new insights coming into crypto erena.

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