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You can find the current article at its original source at https://www.theguardian.com/technology/2017/dec/19/korean-cryptocurrency-exchange-close-second-hacking-youbit
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| Korean cryptocurrency exchange to close after second hacking in a year | Korean cryptocurrency exchange to close after second hacking in a year |
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| A South Korean cryptocurrency exchange is to file for bankruptcy after it was hacked for the second time this year, highlighting concerns about security amid booming trade in bitcoin and other virtual currencies. | A South Korean cryptocurrency exchange is to file for bankruptcy after it was hacked for the second time this year, highlighting concerns about security amid booming trade in bitcoin and other virtual currencies. |
| The exchange, called Youbit, had been hacked once before in April when nearly 4,000 bitcoins were stolen in a cyber-attack that the country’s spy agency linked to North Korea, according to a recent South Korean newspaper report. | The exchange, called Youbit, had been hacked once before in April when nearly 4,000 bitcoins were stolen in a cyber-attack that the country’s spy agency linked to North Korea, according to a recent South Korean newspaper report. |
| Youbit announced on its website on Tuesday that it had been hacked at 4.35am local time, causing a loss worth 17% of its total assets. | Youbit announced on its website on Tuesday that it had been hacked at 4.35am local time, causing a loss worth 17% of its total assets. |
| It did not elaborate on the amount, but said all customers’ cryptocurrency assets would be marked down to 75% of their value. It added that it had stopped trading and would work to minimise customer losses. | It did not elaborate on the amount, but said all customers’ cryptocurrency assets would be marked down to 75% of their value. It added that it had stopped trading and would work to minimise customer losses. |
| Bitcoin traded at around $18,800 on Tuesday morning. It made its debut on the world’s largest futures exchange on Sunday evening, when the Chicago Mercantile Exchange (CME) became the second exchange to offer bitcoin derivatives trading. | Bitcoin traded at around $18,800 on Tuesday morning. It made its debut on the world’s largest futures exchange on Sunday evening, when the Chicago Mercantile Exchange (CME) became the second exchange to offer bitcoin derivatives trading. |
| The January 2018 contract initially spiked above $20,000 but later dropped back, having been originally priced at $19,500. | The January 2018 contract initially spiked above $20,000 but later dropped back, having been originally priced at $19,500. |
| But its debut was overshadowed by a series of warnings from politicians and others about the digital currency. | But its debut was overshadowed by a series of warnings from politicians and others about the digital currency. |
| Bitcoin is the first, and the biggest, "cryptocurrency" – a decentralised tradable digital asset. Whether it's a bad investment is the big question . Bitcoin can only be used as a medium of exchange and in practice has been far more important for the dark economy than it has for most legitimate uses. The lack of any central authority makes bitcoin remarkably resilient to censorship, corruption – or regulation. That means it has attracted a range of backers, from libertarian monetarists who enjoy the idea of a currency with no inflation and no central bank, to drug dealers who like the fact that it's hard (but not impossible) to trace a bitcoin transaction back to a physical person. | Bitcoin is the first, and the biggest, "cryptocurrency" – a decentralised tradable digital asset. Whether it's a bad investment is the big question . Bitcoin can only be used as a medium of exchange and in practice has been far more important for the dark economy than it has for most legitimate uses. The lack of any central authority makes bitcoin remarkably resilient to censorship, corruption – or regulation. That means it has attracted a range of backers, from libertarian monetarists who enjoy the idea of a currency with no inflation and no central bank, to drug dealers who like the fact that it's hard (but not impossible) to trace a bitcoin transaction back to a physical person. |
| Axel Weber, chairman of the Swiss bank UBS, warned anyone keen to invest in bitcoin that they risked losing their money. He said: “We as a bank have consciously warned against this product because we do not assess it to be valuable or sustainable.” | Axel Weber, chairman of the Swiss bank UBS, warned anyone keen to invest in bitcoin that they risked losing their money. He said: “We as a bank have consciously warned against this product because we do not assess it to be valuable or sustainable.” |
| Denmark’s top central banker later weighed in, saying people buying bitcoin should not blame regulators if they suffered losses when the market crashed because it was an unregulated market. He said putting money into bitcoin was basically gambling. | Denmark’s top central banker later weighed in, saying people buying bitcoin should not blame regulators if they suffered losses when the market crashed because it was an unregulated market. He said putting money into bitcoin was basically gambling. |
| Youbit is a smaller player in South Korea’s cryptocurrency market, while the world’s busiest cryptocurrency exchange, Bithumb, accounts for about 70% of the country’s market share. | |
| An official at Korea Internet & Security Agency (KISA), the state agency that responds to cyber-attacks, said the police and KISA officials were starting an investigation into the hacking. | An official at Korea Internet & Security Agency (KISA), the state agency that responds to cyber-attacks, said the police and KISA officials were starting an investigation into the hacking. |
| It is the second hacking within a fortnight. Nearly $64m of bitcoin was stolen by hackers who broke into the Slovenian-based bitcoin mining marketplace NiceHash. The hack was “a highly professional attack with sophisticated social engineering” that resulted in approximately 4,700 bitcoin being stolen, worth about $63.92m at current prices, said NiceHash’s head of marketing, Andrej P Škraba. | It is the second hacking within a fortnight. Nearly $64m of bitcoin was stolen by hackers who broke into the Slovenian-based bitcoin mining marketplace NiceHash. The hack was “a highly professional attack with sophisticated social engineering” that resulted in approximately 4,700 bitcoin being stolen, worth about $63.92m at current prices, said NiceHash’s head of marketing, Andrej P Škraba. |
| Bitcoin exchanges and wallets have a history of being targeted, and security experts say they become more vulnerable to cybercrime as valuations rise. | Bitcoin exchanges and wallets have a history of being targeted, and security experts say they become more vulnerable to cybercrime as valuations rise. |