As the cryptocurrency market is growing at this time, digital currency trading platforms have become the primary targets of cybercriminals. The evidence, Youbit, a South Korean exchange has just been attacked for the second time.
Youbit, hacked then cast
The cryptocurrency market in South Korea is dominated by two trading platforms in particular, namely Coinone and Bithumb (known recently for its repeated server failures). Despite the supremacy of these two companies, other lesser known platforms are trying to gain popularity, like Youbit. Unfortunately, the latter has just been stopped in its tracks.
The "small" Youbit exchange has just been hacked last Tuesday, after which it lost 17% of its clients' assets. Worse still, this drama that occurred at 4:35 in the morning simply caused the loss of the business. Indeed, the platform has decided to close its doors after having lost nearly 4,000 bitcoins last April because of another cyberattack.
Appalled, the Youbit team announced the bad news via a statement posted on their homepage: "We are really sorry to inform you again of this sad news ... We will close all exchanges, suspend all deposits and withdrawals and take steps to declare bankruptcy. "
They tried everything
According to the release, Youbit's developers have done their utmost to prevent the April incident from happening again, but to no avail. "After the April incident, we made every effort to enhance security, recruit staff, and reduce wallet hot storage. "
But then, Youbit did not survive the second hack and explains the situation to his clients by stating, "Due to the bankruptcy, the settlement of cash and coins will be done in accordance with all bankruptcy procedures. "
In the end, however, the platform reassured members that it was looking for ways to minimize losses. "We will do our best to minimize the loss of our members below 17%, through various methods such as multi-risk insurance (W 3 billion) and the sale of the company's operating rights. "
Anyway, it's really sad news for the South Korean cryptocurrency market that is still in the process of regulation.