An important cryptocurrency exchange in South Korea, YouBit, has been hacked for the second time in the year. The company announced that at 4:35 am (South Korean time), they have lost 17 percent of the total assets. Bitcoin lost more than $1,000 dollars in several exchanges in less than 3 hours. It passed from $18,900 to $17,800 dollars. Now it has started to grow again and it is being traded around $18,500 at the moment of writing this article.
YouBit Hack – The Second Time in 2017
Back in April, the company has been hacked compromising an amount that arrives at the sum of 4,000 Bitcoin. This cyber attack was carried out by North Korea as it was informed by the South Korean’s spy agency. It is not the first time that South Korea is attacked by North Korea in the cyberspace.
At the moment, the company hasn’t specified how many funds have been stolen. The users’ assets will be reduced to 75 percent of their value. YouBit explained that they have the other coins in cold wallets and no further losses were registered. Even when the exchange is not one of the biggest, it has shocked the Bitcoin market. The currency lost around 7 percent of its value in a matter of hours.
This situation has obliged the company to announce that they went bankrupt. YouBit stated that they will do their best as possible to minimize the loss of the members. They will sell the operating rights of the company and will appeal to cyber insurance.
Not the First Neither the Last Hack
Different exchanges and wallets have been hacked many different times in history. Mt Gox is probably the best example of it. In February 2014, the company closed its website and announced that 850,000 Bitcoin were stolen. This situation created an important crash in the cryptocurrency market. Bitcoin and Litecoin lost almost 90 percent of their value in just some few hours. Mt Gox was handling almost 70 percent of Bitcoin transactions all over the world. It was considered the biggest bitcoin exchange at the moment.
In the Ethereum network these things happened too. For example, the DAO is a famous hack that stole several funds collected during the sale of its tokens. At this time, Ether lost almost half of its value. In order to have back the funds, the Ethereum network split into two. Ethereum Classic (the old chain) and Ethereum (the new chain and supported by the majority).
Some time ago, at CoinStaker we have covered how Parity, Ethereum’s second most important client, lost 500,000 ETH. So as to recover the funds, the company has proposed different solutions, included a possible hard fork.
CoinStaker team believes and recommends to store the funds in hardware wallets. This is one of the safest ways to store the cryptocurrencies you own and avoid these kinds of problems. Exchanges and online wallets are not the safest places to store virtual currencies. Several recognized developers recommend to move most of the funds to hardware wallets.
Picture Courtesy of Pixabay
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