Korean Cryptocurrency Exchange Youbit to Close After Second Hack in a Year

South Korean cryptocurrency exchange Youbit has revealed plans to file for bankruptcy. The decision to close operations follows announcements that the exchange was hacked for the second time this year.

Also Read: More Firms Entering the Bitcoin Market See Stocks Soar

Second Accident in a Year

Youbit announced on its website on Tuesday that it had been hacked at 4:35am local time on Tuesday, causing a loss worth 17 percent of its total assets. It did not elaborate on the amount, but said all customers’ cryptocurrency assets will be marked down to 75 percent of their value, adding that the other coins were kept in cold wallets and there were no additional losses. Accordingly, all coins trading and cash withdrawals were suspended to minimize customer losses.

Youbit is a smaller player in South Korea’s cryptocurrency market. It had been hacked once before in April when nearly 4,000 BTC were stolen in a cyberattack that the country’s spy agency linked to North Korea, according to a recent South Korean newspaper report.

An official at Korea Internet & Security Agency (KISA), the state agency that responds to cyberattacks, said the police and KISA officials were starting an investigation into the hacking.

Rising Concerns About Security

Bitcoin exchanges have a history of being targeted, especially in a bullish crypto market where bitcoin and altcoins are gaining more traction.

Bitcoin traded at around $18,615 on Coinbase at press time. And on Sunday evening it made its long-awaited debut on CME Group with the sale price for its Jan. 18 contracts initially opening above $20,000 and later dropping back to $19,500. CME data reveals that over 200 January 2018 contracts were bought during the first hour.

With no signs of a downtrend in cryptocurrency prices, security experts warn that bitcoin exchanges and wallet services are likely to become more vulnerable to cyber attacks.

Do you think more security breaches like Youbit are inevitable? leave your comments below!

Images via Shutterstock

Do you like to research and read about Bitcoin technology? Check out Bitcoin.com’s Wiki page for an in-depth look at Bitcoin’s innovative technology and interesting history.