YOUBIT

DESCRIPTION OF EVENTS

“Youbit, which lets people buy and sell bitcoins and other virtual currencies, has filed for bankruptcy after losing 17% of its assets in the cyber-attack.” "The cyber attack is the second for Youbit, previously known Yapizon. The exchange was previously targeted in April in an attack which South Korean officials believe was conducted with the support of neighboring North Korea. Recent reports indicate that intelligence services in South Korea suspect that North Korea is behind additional attacks against domestic cryptocurrency exchanges, including market-leader Bithumb." “Yapian obtained a DB Cyber Comprehensive Liability Insurance policy just 20 days before it declared bankruptcy” “DB Insurance, one of South Korea’s biggest property-and-casualty insurers, has denied the claim of 3 billion won (~USD$2.65 million) by Yapian, the operator of Youbit” “In a statement, Youbit said that customers would get back about 75% of the value of the crypto-currency they have lodged with the exchange.” “But, to claim the rest of the funds, the company stated that investors will have to wait until the final settlement of bankruptcy proceedings.” “Unfortunately, for Youbit investors, it may take several months to years to receive the remaining 25 percent of their personal funds, as the settlement of bankruptcy proceedings will have to be finalized before the company can credit its customers.” “The hack has been attributed to North Korean hackers” “While the investigation could take “weeks” to review the malware code, “the people said there were telltale signs and historical evidence that North Korea was behind the Youbit attack,” the news outlet detailed.” “According to Yonhap, the rights and duties related to the personal information of Youbit members and all assets were transferred to Coinbin on March 21.”

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Details appear to have been slow to come out on this hack, which took place right after a government security inspection by South Korea. It appears to be some kind of malware which was installed on the operation. Youbit had been previously hacked in April, and would again suffer issues as CoinBin in the future. The exchange filed for insurance, but this was denied, causing them to file for bankruptcy, before eventually being purchased by another exchange CoinBin. This highlights the importance of using air-gapped multi-sig cold storage, where any transactions are signed in an isolated environment and a breach requires all parties to sign off. Had this been employed for the vast majority of funds, and a self-insurance model been employed for the narrow percentage of hot wallets, the bankruptcy would have been avoided.

South Korean Government Under Fire As 3 More Crypto Platforms Hacked - The Coin Republic: Cryptocurrency , Bitcoin, Ethereum & Blockchain News (Jan 31)
Hacked Cryptocurrency Exchange Youbit Re-Emerges Amid Insurance Controversy | News Bitcoin News (Feb 7)
Another Bitcoin Exchange Hacked: Youbit Files Bankruptcy After Losing Users’ Coins - Cryptovest (Feb 7)
Bitcoin exchange Youbit shuts after second hack attack - BBC News (Feb 8)
A South Korean bitcoin exchange has filed for bankruptcy after being hacked again (Feb 8)
100 Crypto Thefts: A Timeline of Hacks, Glitches, Exit Scams, and other Lost Cryptocurrency Incidents (Jan 25)
Total of 7 Crypto Exchanges and 158 Wallets Hacked in South Korea, Police Find | Security Bitcoin News (Feb 26)
North Korea Accused of Hacking South Korean Bitcoin Exchange Youbit (Feb 28)
Bitcoin exchange goes bust after hack  (Feb 28)
South Korea: Insurance Company Denies Hacked Crypto Exchange’s Damages Claim (Feb 28)
South Korean Exchange Youbit Denied Insurance Claim Following December’s Devastating Cyberattack | NewsBTC (Feb 28)
Bitcoin Scams and Cryptocurrency Hacks List - BitcoinExchangeGuide.com (Mar 5)
Hacked Cryptocurrency Exchange Youbit Re-Emerges Amid Insurance Controversy (Mar 7)
Hacked cryptocurrency exchange resurfaces after insurance fiasco | Insurance Business (Mar 7)
SlowMist Hacked - SlowMist Zone (Jun 26)
Youbit 당신의 가상화폐 거래소 유빗 (Oct 16)

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