Business Korea, Coinbin’s CEO Park Chan-kyu announced the bankruptcy on February 20, 2018. Immediately, after which cryptocurrency and cash settlements were stopped and will now be performed as part of bankruptcy procedures.
Park further revealed that the employee in charge of cryptocurrency balances at the exchange, who also happened to be the previous CEO of Youbit has neglected his responsibilities and embezzled Coinbin funds. Park said:
We are preparing to file for bankruptcy due to a rise in debt following an employee’s embezzlement.
As per park, the said employee intentionally appropriated the key to an Ethereum wallet containing over 100 Ethereum. However, the employee claimed the cryptographic key had been lost.
South Korea's cryptocurrency exchange, "Coinbin(???)", has filed for bankruptcy due to the loss of the wallet manager's private key. https://t.co/WEULNNZetZ pic.twitter.com/9YpeTzwFbC
— IssueMakersLab (@issuemakerslab) February 20, 2019
Youbit obtained the insurance on Dec. 1 last year and stopped transactions of coins and won in the same month [on Dec. 19], saying that they saw the hacking damage.
Yapian Corp, Youbit’s parent company have had the policy from DB Insurance, a major South Korean firm. However, DB Insurance denied their claim and citied that the exchange had failed to disclose information to its underwriters. In return, Yapian Corp accused the insurance company of using the hack as an excuse not to cover the losses.
Later it was reported that rights, information, and assets from Youbit were transferred to Coinbin on March 21, 2018, amidst ongoing civil lawsuits.
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