Around $5.5 Million Lost By Hacked South Korean Bitcoin Exchange

Threats Bitcoin Exchanges

Last week, a South Korean Bitcoin exchange named Yapizon announced that they have lost 3816.2028 bitcoin worth of more than $ 5.5 million when their system breached by an unknown hacker and steal funds from their server.

As per the website’s homepage, they have issued a statement and says that the hack takes place during the early hours on 22 April between the time 2 AM and 3 AM.

There were four wallets from which the funds get stolen. These are those intermediary wallets that are employed by all exchanges for holding bitcoin funds to cover the instant transactions.

The bad news here is that these four hot wallets account for nearly 36.594 percent of the entire bitcoin funds of Yapizon. The company planned to deal with the hack in a similar way as Bitfinex, which is the largest Bitcoin exchange in the world. In August 2016, this exchange lost nearly 119,756 Bitcoins worth a huge amount of $ 67.47 million during the time of hack.

There was a controversial decision implemented by the Bitfinx when they decide to divide the losses to the accounts of the all the users along with issuing Bitfinex tokens for dealing with the losses.

When the Bitfinex recovered from the hack, they take back all the tokens and the losses were recouped to the users. On 3 April, the token buyback process closed by the Bitfinex successfully.

Similar Approach

A Similar type of approach has been followed by the Yapizon and that’s why they have already spread the losses to all accounts. They have deducted 36.594% percent from the wallet of every user and issued so-called Fei tokens for the funds that they lost.

There is a clear indication given by the exchange that hacking has been performed by an outsider and they have reported about this incident to the Cyber Investigation Division working under the Seoul Metropolitan Police. They are looking for some positive action from the department.

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