Cyber Crime

South Korea cryptocurrency exchange Youbit shuts down after second hack in 2017

The South Korea Cryptocurrency Exchange Youbit has gone bankrupt after suffering a major cyber attack for the second time this year.

The South Korea Cryptocurrency Exchange Youbit shuts down after suffering a major cyber attack for the second time this year. The company announced bankrupt on Tuesday after being hacked for the second time in the last eight months, the company declared it had lost 17 percent of its assets in the last attack.

This is the first time that a cryptocurrency exchange based in South Korean has gone bankrupt.

Eight months ago hackers stole nearly 4,000 bitcoin (5.5 billion won ($5 million) at the time of the hack) that accounted for nearly 40 percent of the Youbit exchange’s total assets.Lazarus targets Bitcoin companyLazarus targets Bitcoin company

The company blamed North Korea for the attack.

“We will close all trades, suspend all deposits or withdrawals and take steps for bankruptcy,” reads the statement issued by the company after the last attack.

In order to minimize the economic impact of the customers, all the clients will have their cryptocurrency assets marked down by 25 percent, in this way Youbit wants to cover the losses selling the remaining assets and using insurance.

The South Korean market for virtual currencies has become one of the most active,  considering that whose trades account for some 20 percent of global Bitcoin transactions. More than one million South Koreans already invested in Bitcoin.

Analysts observed that the demand is very high, for this reason, prices for the unit are around 20 percent higher than in the US.

While global bitcoin prices continue to increase, threat actors are focusing their interests on the virtual currencies.

Recently security experts from Secureworks revealed the Lazarus APT group launched a spearphishing campaign against a London cryptocurrency company.

[adrotate banner=”9″] [adrotate banner=”12″]

Pierluigi Paganini

(Security Affairs – hacking, Youbit)

[adrotate banner=”5″]

[adrotate banner=”13″]

Pierluigi Paganini

Pierluigi Paganini is member of the ENISA (European Union Agency for Network and Information Security) Threat Landscape Stakeholder Group and Cyber G7 Group, he is also a Security Evangelist, Security Analyst and Freelance Writer. Editor-in-Chief at "Cyber Defense Magazine", Pierluigi is a cyber security expert with over 20 years experience in the field, he is Certified Ethical Hacker at EC Council in London. The passion for writing and a strong belief that security is founded on sharing and awareness led Pierluigi to find the security blog "Security Affairs" recently named a Top National Security Resource for US. Pierluigi is a member of the "The Hacker News" team and he is a writer for some major publications in the field such as Cyber War Zone, ICTTF, Infosec Island, Infosec Institute, The Hacker News Magazine and for many other Security magazines. Author of the Books "The Deep Dark Web" and “Digital Virtual Currency and Bitcoin”.

Recent Posts

President Trump fired the head of U.S. Cyber Command and NSA

President Trump fired Gen. Timothy Haugh as head of U.S. Cyber Command and NSA President…

8 hours ago

Critical flaw in Apache Parquet’s Java Library allows remote code execution

Experts warn of a critical vulnerability impacting Apache Parquet's Java Library that could allow remote…

12 hours ago

CERT-UA reports attacks in March 2025 targeting Ukrainian agencies with WRECKSTEEL Malware

CERT-UA reported three cyberattacks targeting Ukraine’s state agencies and critical infrastructure to steal sensitive data.…

14 hours ago

39M secrets exposed: GitHub rolls out new security tools

39 Million Secrets Leaked on GitHub in 2024 GitHub found 39M secrets leaked in 2024…

15 hours ago

China-linked group UNC5221 exploited Ivanti Connect Secure zero-day since mid-March

Ivanti addressed a critical remote code execution flaw in Connect Secure, which has been exploited…

1 day ago

Europol-led operation shuts down CSAM platform Kidflix, leading to 79 arrests

An international law enforcement operation shuts down Kidflix, a child sexual abuse material (CSAM) streaming…

1 day ago