Youbit Hack Leading to Bankruptcy

Another Crypto Attack

A South Korean cryptocurrency exchange called Youbit was hacked. The attackers walked away with 17% of the company’s asset, leading to the company’s plan for bankruptcy.

This is the second Youbit hack within 8 months. Last April, the company encouraged their customers to keep their holdings in a secure (cold-wallet) location.

The orchestrators of Youbit hack compromised hot-wallets only, according to the company, while cold-wallets stored offline were safe from the attackers. Nevertheless, all customer assets will be marked down to 75% of their value.

According to BBC:

South Korea’s Internet and Security Agency (Kisa) which investigates net crime, said it had started an enquiry into how the thieves gained access to the exchange’s core systems.

Kisa blamed the earlier attack on Youbit on cyber-spies working for North Korea. Separate, more recent, attacks on the Bithumb and Coinis exchanges, have also been blamed on the regime.

Yet another hack?

Earlier this December, Nicehash, a miners market company, was robbed of $60 million dollars.

Impact on the cryptocurrency market

After reaching almost $20,000 USD in price, Bitcoin took a hit, probably because of the attack, going down to almost $13,400 USD.

youbit hack security news

What should YOU do?

Move your coin holdings to a safe cold-storage environment. We recommend Nano Ledger S, especially if you plan on holding (hodling) your coins.

A lot of exchanges have strong security, but why take the risk keeping coins in environments that could be attacked by determined hackers?

Sources:

The independent 

Quartz

BBC

Mohamad El Hout, MBA, M.Eng., CISSP

Mohamad is an entrepreneur and a Senior Security Consultant dealing with the design and delivery of standard and complex security gateway solutions, covering a wide range of cutting edge technologies. His interests include business, technology, leadership, sports, and the continuous pursuit of knowledge.

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