Korean cryptocurrency trading platform Coinbin, which took over the Top Ten Korean Exchange Youbit last April after Youbit lost $15 million USD (17 billion won) in a hack in client funds, has now declared insolvency and has stopped all trading activities on February 22nd. Coinbin had taken over Youbit, a cryptocurrency exchange that agonized a hack of 17 billion won at the end of 2017.
In April of the same year, Youbit thrived Yapizon, which lost 5.5 billion won because of the huge hacking.
Park Chan-kyu, Coinbin CEO, reportedly told correspondents assembled at Coinbin’s Seoul office on Feb. 20th that the bankruptcy was persuaded by misappropriation:
“We are preparing to file for bankruptcy due to a rise in debt following an employee’s embezzlement,” Park Chan-kyu, CEO of Coinbin, told reporters in its Seoul office on Feb. 20. As a result, all cryptocurrency and cash withdrawals from the exchange were halted at 3:00 p.m. on the day. Cryptocurrency and cash payments will be done in agreement with insolvency procedures, Coinbin said.
The misappropriation was supposedly committed by a former Youbit CEO who demanded he lose access to “cloistered keys” (passwords) required to access the many Ethers and bitcoins he’d moved to cryptocurrency wallets.
Managers of the Canadian cryptocurrency trading platform QuadrigaCX have made the same claims lately. They stated that their CEO, Gerald Cotten, had expired without assuring other parties could access $260 million CAD of the exchange’s funds.
But Park informed reporters that the former Youbit CEO’s story was unlikely because the person was a supposed cryptocurrency expert.
Numerous exchanges in South Korea have been bulls of alike fake doings in current months, both from scammers directing genuine industries and from numerous exchanges rotating out to be fake in some technique.
For instance, in January 2019, exchanges UpBit and Komid both saw the highest managers face prison terms for numerous acts of deceiving users. Moreover, in November 2018, PureBit sent a confession notice on its website after the theft of $2.8 million in a justly forthright departure rip-off.
The Korean exchange is a comparatively small market; however, its dilemmas highlight the risks in this market and support the argument for regulating exchanges. In this case, it was conceivable for the defender to steal not only the capitals but even the complete wallets.
Safe protection is seen as one of the key drivers of wider cryptocurrency acceptance and recognized investment, both for security and Bitcoin tokens.