Youbit file for bankruptcy, after a second hacking this year

The foreign exchange market by south Korean crypto-currencies Youbit has filed for bankruptcy after a second hacking of its platform this year.


Interruption of transactions on the platform

Yesterday morning, Youbit, whose headquarters is in Seoul, has published a press release informing the users that a hacker had managed to steal 17 % of the assets available on the e-wallet of the platform. This is the second time this year that Youbit is the target of a hacking. Last April, the platform has flown nearly 4,000 Bitcoins. Moreover, at the time, the south Korean authorities had said that this cyber attack had been sponsored by North Korea. Youbit said to have strengthened its security policy after the hacking of the month of April, and that 83 % of the remaining assets have been placed in security. However, Yaipan – the company that manages Youbit – filed for bankruptcy Tuesday and stopped all transactions on the platform.

The prime target of hackers

Although South Korea is one of the largest markets for crypto-currencies in the world, Youbit was a market small enough that dealt with a limited volume of transactions. Therefore, its collapse will have a negligible effect on the ecosystem as a whole. However, the exchanges order books represent a central point of failure on the market, and the price increase of Bitcoin and other crypto-currencies has made the target more attractive to hackers. As such, users should exercise caution when they store their funds with a centralized service. Last month, for example, the service NiceHash, specialised in the storage of crypto-currencies in the cloud, has become the target of cyber-attacks, resulting in the theft of more than 4,700 Bitcoins with a value of approximately $ 86 million at the current exchange rate.

Source : News.Bitcoin