Youbit: Hacked Again – Bitcoin drop again

Youbit: Hacked Again – Bitcoin drop again

Last week, Bitcoin’s value dropped by an estimated$7,000. This recent drop in value is certainly due to a market correction, including also the rise of Bitcoin Cash. Indeed the hard fork Bitcoin Cash was launched thanks to his integration in Coinbase .

Moreover  Youbit, a South Korean exchange platform, has been hacked and is facing a suspension of their stock market price. Early on, Bitcoin was worth about $20,000, but then after the attack, its value dropped down to only $16,000.

Recently, Bloomberg had forecast a rise to about $20,000 which however, could be false. The attacks caused Youbit to declare bankruptcy and shut down its operations. A decision that will be bad news to anyone who had money invested on the platform.

North Korean Hackers Behind the Attacks

According to a report by Reuters, the Korea Internet & Security Agency or KISA is currently investigating the incident and they have recently made a statement that suggests North Korean hackers could be responsible for this second attack.

Chris Doman, a threat engineer for a tech security company, AlienVault, told Bitcoin Magazine that BlueNoroff, a sub-group of the North Korean cybercrime group Lazarus, could be the brains behind the piracy. Lazarus is already infamous for several other cyber-attacks, namely when Sony Pictures was attacked in November 2014.

In addition, North Korea is among some of the countries that are actively seeking to gain Bitcoin, and this is not the first time that it has attacked similar exchange platforms. For their part, Youbit is promising to minimize the losses of their customers.

Considerable Losses

Back in April, Youbit was first hacked and cost the company nearly $5 million which is about 4,000 Bitcoin. This accounted for the company losing about 40% of its assets. Then, only eights months later, the company was attacked again which saw it lose another 17% of its assets.

According to a statement by Raita Yamaguchi, a consultant for Nomura Research Institute, the digital currency market is being affected by position adjustments and hacks that will not stop taking victims. Now, the South Korea exchange platform has declared bankruptcy.

Financial Transactions are Lacking Transparency

The SEC, who oversees the financial markets, announced on Tuesday that there would be a suspension regarding the cryptocurrency, which is planned to last at least until January 2018. The suspension is due to recent suspicions of a company manipulating Bitcoin’s value.

Note that the stock market level of some of these companies increased by 17,000% in only 3 months. Which is why, the SEC is now concerned that several trading platforms are taking advantage of cryptocurrency by hiding the real motive and exact numbers from their shareholders.

Bitcoin’s Motto

Up to now, Bitcoin was considered one of the most well-known and lucrative cryptocurrencies on the market. The encrypted currency is mostly known for its independence from any type of central banking system.

Every transaction of Bitcoin can be verified by its users via the network’s nodes. Since its value has increased about twenty times in only one year, the French Minister of the Economy has now announced his intentions to start using Bitcoin.

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