South Korean Crypto Exchange Went Bankrupt Due to Embezzlement

Coinbin, the South Korean cryptocurrency exchange, declared bankruptcy. Among the reasons for the terrible state of the exchange are exorbitant debts, regulation of the authorities, as well as the theft of money by one of the executives.

The exchange has suspended the withdrawal of cryptocurrency and fiat money. The platform also asked customers not to transfer money to the accounts of the exchange. Users will be able to return their funds as part of the bankruptcy procedure.

According to Coinbin, the exchange had to cease operations due to the excessive debt that it received because of the bankruptcy of its subsidiary trading platform Youbit. In addition, the regulator has banned the exchange from opening virtual accounts to users.

In addition, an unidentified executive of Youbit also contributed to bankruptcy. Allegedly, he lost paper wallets, which were stored "hundreds" of bitcoin and 100 ETH. Coinbin claims that the loss was not accidental, and the employee embezzled the money. The exchange takes actions to restore access to wallets and is going to sue the manager.

According to Business Korea, the total amount of damage caused to Coinbin’s customers is estimated at $26 million.

Coinbin bought Youbit at the end of 2017. After that, hackers attacked Youbit and stole almost 17% of all exchange’s assets. Although the assets were ensured, the insurer refused to pay damages. As a result, Youbit was forced to declare bankruptcy and transfer part of its obligations to Coinbin

1 year ago

Start Weekly Digest

Similar news