South Korea cryptocurrency exchange shuts down after hacking; declares bankruptcy

Seoul

A SOUTH Korean exchange trading bitcoin and other virtual currencies declared itself bankrupt on Tuesday after being hacked for the second time this year, highlighting the risk over cryptocurrencies as they soar in popularity.

The Youbit exchange said that it had lost 17 per cent of its assets in the attack on Tuesday. It came eight months after nearly 4,000 bitcoin - then valued at 5.5 billion won (S$6.8 million) and nearly 40 per cent of the exchange's total assets - were stolen in a cyber attack blamed on North Korea.