17% bitcoin reserves stolen: Youbit was hacked by Korea Exchange, announcing bankruptcy

nRunaway Comment: Youbit South Korea cryptocurrency exchange yesterday announced that it encountered a second hacker this year, the Exchange hot-wallet was compromised, resulting in a direct loss of nearly 17% of its assets. Currently, the exchange has filed for bankruptcy. Although Youbit is small enough to have no significant impact on the entire ecosystem, as cryptocurrency market values ​​continue to rise this year, cryptocurrency exchanges are increasingly targeted by hackers, while centrally operated entrusted orders Exchanges are even more the center of failure in the market, and the collapse of any major exchange could have a ripple effect on the global ecosystem.n
nTranslation: Clovern
South Korea cryptocurrency exchange Youbit trading platform for the second time this year was hacked, has now filed for bankruptcy.n
Youbit filed for bankruptcy on the second hacking this yearn
On Tuesday morning, Seoul-based Youbit released a notice telling users that hackers had successfully breached the exchange’s hot-wallet, resulting in the loss of nearly 17% of its assets.n
This is the second time You’ve been hit by a hacker this year. According to Reuters, the exchange stole nearly 4,000 bitcoin in April, while South Korean authorities believe the cyberattack was carried out by North Korea.n
Youbit said after a hacker attack in April, it stepped up its security strategy to keep the remaining 83% of the exchange’s money safely in the cold wallet. Despite this, Yaipan, the company that runs the exchange, filed for bankruptcy on Tuesday and stopped trading on the platform.n
The announcement showed that the exchange reduced the value of all clients’ assets to 75% of the market value, and the client could immediately withdraw this part of the assets. The company said it will pay off the remaining funds by the end of the bankruptcy process, when it will file an insurance claim and sell the company’s franchise.n
Bitcoin Exchange as Failure Centern
Although South Korea is one of the largest cryptocurrency markets in the world, Youbit is a small exchange with minimal transaction volume. Therefore, the impact of the crash on the broader ecosystem is negligible. However, the single-unit exchange has become the center of failure in the market, and the continuing rise in the price of cryptocurrencies, such as Bitcoin, has also made them increasingly attractive targets for hackers.n
Although cryptocurrencies are traded all over the world, almost all transactions in individual markets are concentrated in a few exchanges. For example, Bithumb accounts for nearly 70% of the entire market in South Korea for its cryptocurrency transactions. The successful breakout of any of these major exchanges will have a heavy blow to the regional markets and may have a ripple effect on the global ecosystem.n
However, users must be extremely careful when storing funds in any centralized service provider at any time. Last month, a cloud-mining service provider, NiceHash, was hit by hackers and stolen more than 4,700 bitcoins, worth about $ 86 million at its current exchange rate.n

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