Coinbin Exchange Files For Bankruptcy: More Than $26 Mln Embezzled

South Korean cryptocurrency exchange Coinbin has filed for bankruptcy after a loss of about $26 mln, Business Korea reports.

Coinbin crypto exchange has become the owner and the successor of the notoriously known Youbit exchange, which is twice-hacked in 2017. Now it seems that the same fate awaits Coinbin, as it happened with the predecessor. Coinbin CEO Park CHANG-KYU announced the unpleasant news, saying: “We are preparing to file for bankruptcy due to a rise in debt following an employee’s embezzlement.” The explanations make it clear that the employee responsible for the storage of cryptocurrency funds on the exchange, has embezzled Coinbin funds.

The most notable thing in this situation is that this employee is a former Youbit CEO. He removed hundreds of cryptographic keys from wallets containing hundreds of bitcoins and appropriated the key to the Ethereum wallet containing more than 100 coins. Due to such acts, bankruptcy will result in a loss of 29.3 bln won, or about $26 mln.

Youbit was hacked in April and December 2017; the total losses amounted to more than $15 mln. Subsequently, the Youbit Exchange filed for bankruptcy, and after a few months, Coinbin became its successor.

Image courtesy of Nextmoney.jp