Coinbin South Korean Cryptocurrency Exchange Files for Bankruptcy, Loses Over $26 Million
The cryptocurrency exchange Coinbin, located in South Korea, is currently filing for bankruptcy after taking over the hacked crypto exchange Youbit. Coinbin claims to have over $26 millions in losses. The information was released by Business Korea and the announcement was made by the CEO of the company Park Chan-kyu on February 20.
After this announcement, cash and crypto settlements were stopped. Now, they will be performed as part of bankruptcy procedures. According to Park, the Coinbin employee in charge of the cryptocurrency balances (the previous CEO of Youbit), embezzled Coinbin funds.
Park informed that the employee intentionally appropriated the key o an Ethereum (ETH) wallet that contained over 100 ETH. He then claimed that the cryptographic key had been lost.
That means that $26 million will be lost. Back in December 2017, when Bitcoin (BTC) was reaching its all-time high, the exchange was hacked losing a fifth of the users’ crypto holdings. After this attack, the company filed for bankruptcy.
As per some reports, Yapian Corp, the parent company of the cryptocurrency exchange, stated that the company failed to disclose information to its underwriters. Additionally, Yapian Corp said that the insurance company used the hack as an excuse not to cover the losses experienced by the platform.
Some enthusiasts on social media suggested that North Korea could have been behind the attacks to Youbit, which was the first exchange to open in South Korea.
Bitcoin’s price started to recover during the last days, but it seems that the positive sentiment in the market did not last long. Indeed, Bitcoin is dropping around 9% in just 24 hours and is trading under $4,000, close to $3,800.
South Korea has been implementing harder regulations in the market during the last few years. Japan has also been very hard with companies in the market. Japan is requesting several requisites for an exchange to be able to operate in the country. The decision was taken after the Coincheck hack in January 2018. We also have recently reported on the latest Cryptopia Exchange hack news including the investigation updates and official response from the attacked crypto trading platform.