Youbit

On December 19, 2017, Youbit, a modest South Korean cryptocurrency exchange, crumbled under the weight of a second devastating cyberattack, prompting its immediate closure and a plunge into bankruptcy. The breach, striking at 4:35 a.m. local time, sapped 17% of Youbit’s total assets, as announced on its website and reported by Reuters. While the exact amount stolen remained undisclosed, the exchange slashed all customer cryptocurrency balances by 25% to offset losses, halting trading to curb further damage. This marked Youbit’s second assault that year, following an April hack where North Korea, per a Chosun Ilbo report, was blamed for stealing nearly 4000 BTC.

Overshadowed by Bithumb’s 70% market dominance in South Korea, Youbit struggled to recover, with no funds reclaimed from either incident. As Bitcoin hovered near a record $18759 on Bitstamp, per CoinGecko, the Korea Internet & Security Agency launched a probe alongside police, but 2017’s sparse regulatory landscape offered little recourse. Social media buzzed with user frustration, some on Twitter lamenting frozen withdrawals, while others speculated about insider involvement. The collapse, amplifying fears amid skyrocketing crypto valuations, underscored the vulnerability of smaller exchanges, igniting urgent demands for fortified hot wallet security, mandatory reserve audits, and global cybersecurity standards to shore up South Korea’s booming crypto market.