South korea: the bankruptcy of a trading platform of virtual currency hacked

The platform of south Korean foreign currency exchange cryptographic Youbit is declared bankrupt (Photo by Anthony WALLACE. AFP)

A platform for south-Korean currency exchange cryptographic was declared bankrupt Tuesday after having been the victim of hacking twice this year, illustrating the dangers of virtual currency that have the wind in their sails.

The platform Youbit stated that it had lost 17% of its assets in the attack on Tuesday.

Eight months ago, around 4,000 bitcoins, with a value estimated at 5.5 billion won (five million dollars) and accounted for nearly 40% of its assets, had been stolen in a cyber attack blamed on North Korea.

“We will close all the exchanges, suspend all of the deposits and withdrawals, and take steps to declare bankruptcy,” said Youbit in a press release.

The assets in crypto-currency clients will be devalued by 25%, adds the platform, who explained that it will do its best to “minimize” their losses by insurance and by selling what remains of the company.

The platform, founded in 2013 specialized in trading multiple virtual currencies including bitcoin and ethereum.

This is the first time that a platform in south korea bankrupt.

Invest in the cryptomonnaies has become very popular in South Korea, a country fascinated by technology. The south-Korean bitcoins represent about 20% of world trade in the currency.

According to estimates, one million South Koreans, for the most investors to the short week, have bitcoins. The demand is so high that the price of bitcoin exceeds 20% that of the United States, its largest market.

The international prices of bitcoin have been multiplied by 20 this year.

The possibility of a bubble are very worried with the financial regulators of south korea, who were banned last week for financial institutions to use virtual currencies.

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