A South Korean bitcoin exchange is moving to declare bankruptcy following what it said was a debilitating hack and theft. A message on Youbit’s official website states that at around 4:34 a.m. local time, an external hack resulted in the loss of “about 17% of total assets.”
As Bitcoin and cryptocurrencies continue to rise in value, they become ripe targets for hackers, who have now forced a relatively unknown South Korean cryptocurrency exchange, Youbit, to file for bankruptcy.
Bitcoin This Week: Bitcoins Price Takes A Tumble, Bitcoin Cash Comes Under Scrutiny, LedgerX Bets $1 Million On Bitcoin Being $50,000 Next Year And South Koreas’s “Youbit” Exchange Collapses After The Its Second Hack This Year.
Although Youbit is one of the smaller bitcoin exchanges, the hack underscores the risk involved in leaving funds on an exchange, where control of those funds is handed over to a third party and is only as safe as whatever security measures that exchange chooses to use.