Bitcoin Exchange Files for Bankruptcy After Being Hacked Again

Earlier this week, a major South Korean bitcoin exchange, Youbit, was hacked for the second time in less than 8 months. It has since filed for bankruptcy after releasing that the hackers had stolen 17% of its digital currency reserves.

The exchange trades ten virtual currencies, including bitcoin and ethereum.

Youbit says that the hackers had attacked its “hot-wallet”, which is an account kept online for holding crypto assets, and that its offline, cold-storage holdings are safe and still accessible, adding that all customers will be able to withdraw 75% of their assets once the bankruptcy proceedings are settled.

Allegedly, this attack is an addition to the series of cyberattacks in South Korea, all credited to North Korean hackers targeting the growing market of cryptocurrencies in South Korea.

This hack accentuates the growing concern in the market for the safety of digital currency and holdings.

While with traditional banking, people feel safe with their finances and there is less risk for the customers, cryptocurrencies are highly risky and are increasingly targeted by hackers.
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