Photo credit: Alexandre Chambon

Korean cryptocurrency exchange files for bankruptcy after second hacking

Youbit, a South Korean exchange company was hacked and lost 4,000 of its digital coins. This morning at 4:35 am, they announced a second hacking with allegations placing North Korea as the culprit.

Now with severe losses and their currency marked down to 75% of their value, Youbit will file for bankruptcy and plan to shut down.

The security of cryptocurrency is a serious issue in digital coins. Similar to hacking in banks, the exchange institutions of cryptocurrency are also at risk.

In November, Tether, a start-up that offers dollar-backed digital tokens, announced that is lost $31 million in cryptocurrency and would provide any refunds. It seems like the increasing popularity of cryptocurrency has introduced the old school form of theft too. In New Jersey, a man was held at gunpoint and his digital wallet stolen from his house, reports Bloomberg.

This is just the beginning of a lot of ups-and-downs with the new form of currency. As with all new systems of anything, there are kinks that must be worked out. Because cryptocurrency is digital, and is exchanges happen online, there is an issue with hacking. So with the new frontier comes risks with the reward.

rkitect Duane Reed focuses on the market and currency.

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