It appears that a North Korean cyber-gang may be behind yet another attack to a South Korean cryptocurrency exchange company, Youbit.
The South Korean cryptocurrency exchange company is in the process of filing for bankruptcy, due to the malicious and debilitating hack and theft.
A statement posted on Youbit’s official website shares that, at about 4:34 a.m. local time, an external hack caused the loss of, “about 17% of total assets.”
This is the second time that Youbit has suffered from a cyber attack. Back in April, the exchange experienced its first attack by hackers, and South Korean officials believe that North Korean spies working with the government were involved in the first attack. Reports share that intelligence services in South Korea suspect that North Korea is behind several other attacks against domestic cryptocurrency exchanges too, including market-leader, Bithumb.
Due to the severity of today’s attack, Youbit shared that it has halted all deposits and withdrawals and has begun to look into the situation at hand.
The company cannot promise users a full return of their funds, however, Youbit has shared a statement that says it will be disbursing the cryptocurrency it still has in its possession.
“Due to bankruptcy, the settlement of cash and coins will be carried out in accordance with all bankruptcy procedures,” the exchange said in a translated statement. “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.”
These steps are being taken, even though Youbit says this attack is a less severe intrusion compared to the one it suffered in April. The company plans to try to reduce losses by utilizing insurance funds and selling a stake in the exchange.
“We will do our best to minimize the loss of our members by 17%, through various methods such as cyber comprehensive insurance and selling the operating rights of the company,” the company explained.
With the big cryptocurrency craze, cybercriminals have started popping up, attempting to cash in on the boom, by creating malware that seeks to utilize victims’ computers to “mine” valuable currencies. Other criminals have attacked exchanges to steal large amounts of cryptocurrency at once.
It is important for investors to be vigilant in using all security measures. With proper security in place, it is extremely difficult for cyptocurrency to be hacked.