Bitcoin Exchange Collapses After a Massive Cyberattack Earlier This Morning – Files for Bankruptcy

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Dec 19, 2017
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YouBit, a South Korean bitcoin exchange has claimed that hackers have stolen 17% of its asset reserves. The exchange is now planning to file for bankruptcy. The exchange collapsed on Tuesday after it suffered a second major cyberattack this year, losing most of its cryptocurrency reserves. Since North Korea appears to be the go-to attacker at this moment, South Korea’s intelligence service, Korea Internet and Security Agency (KISA) had also said North Korean hackers are believed to be behind this and the previous attacks on the exchange.

South Korean bitcoin exchange shuts down after a second cyberattack in eight months

YouBit said it has suspended deposits and withdrawals as a result of today’s attack. “Due to bankruptcy, the settlement of cash and coins will be carried out in accordance with all bankruptcy procedures,” the exchange said in a statement (translated) about what should its customers expect.

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“However, in order to minimize the damage to our members, we will arrange for the withdrawal of approximately 75% of the balance at 4:00 am on December 19, the rest of the unpaid portion will be paid after the final settlement is completed.” The exchange also said that it will minimize the losses for customers by selling a stake in the exchange and tapping insurance funds.

“We will do our best to minimize the loss of our members by 17%, through various methods such as cyber comprehensive insurance (3 billion [won]) and selling the operating rights of the company.” [Translated]

Bitcoin wallets and exchanges remain the most lucrative targets for criminals right now mainly due to the unprecedented price hikes in the past few weeks. According to reports, over 70% of all exchanges have suffered DDoS attacks in the past few months.

– Earlier: Cryptojacking, Wallet Stealing, Attacks on Cryptocurrency Exchanges – Don’t Want to Make It Worse? Stop Telling Your Friends!

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