9 Oct, 2019

South Korean Crypto Exchange Shuts Down Post Hack

A South Korean cryptocurrency exchange declared bankruptcy due to a hack that took place on Tuesday.  A message on the official website said, “After the accident in April, we did our best to improve our security, recruitment and system maintenance. However, at 4:35 am, we lost our coins due to a hack.”

The cyber attack was the second in line for the website, the previous taking place in April this year. The amount of asset lost at that time was 4000 bitcoins which is valued at $73 m (around 55 million pounds).

A cyber team known as South Korea’s Internet and Security Agency (KISA) has started their investigations into how hackers managed to gain access into the exchange’s core system.

YouBit did not specify the amount it had been robbed of. However, it reported a loss of around 17% of total assets. The other coins kept in cold wallets, did not suffer the same fate.

Apologizing profusely, to minimize the damage to their customers, YouBit arranged for 75% of the value of the cryptocurrency to be withdrawn on Tuesday.

Currently, no group has taken responsibility for the attack.

In a disturbing trend, cryptocurrency exchanges have been targeted lately. More and more hackers have tried to cash in on the boom surrounding cryptocurrencies. Many of them have also set up malwares in their victims’ computers to mine valuable currencies such as bitcoin, ethereum, etc.

One of the most prominent and largest bitcoin thefts was the Mt. Gox scandal, which saw the loss of over 744,000 bitcoins which amounted to more than $14 billion.