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North Korea Reportedly Behind the Attack on Youbit

6 months ago 783 views

It is reported that North Korea was involved in the recent cyber attack on the South Korean currency exchange Youbit. 17 percent of the assets were stolen in the attack which pushed the exchange to bankruptcy. A similar attack was aimed at the exchange in April and according to Bloomberg, this is possibly an extended version of it. 

Korean Internet and Security Agency and local police are investigating the case.  As per Wall Street, the attack on Youbit is related to North Korea somehow.  After the attack, the value of Bitcoin stumbled to $16,300 from the record $19,000. Yapian, owner of the exchange said: “There were no additional losses, as other coins were in the cold wallet.” A cold wallet is a physical device or a group of devices which is compared safer than cold wallets as these are not connected to the internet and can be plugged in as per the requirement. Owing to the sale of operating privileges and cyber insurance, the damage inflicted amounted to just 17%.

According to a report from Australian Strategic Policy Institute, North Korea has a team of more than 1,700 hackers which are sponsored by the state. Additional staffs of more than 5,000 employees support these hackers.

South Korea has become a hub of people interested in the emerging trend of cryptocurrency. Despite the warning from North Korean Prime Ministers stating that cryptocurrency will lead to the downfall of the nation’s youth, Koreans have welcomed bitcoin with open arms. Interestingly, the value of bitcoin in Korea is more than its value in the International market.  

North Korea has also been accused by the US to initiate the “Wannacry” malware attack conducted in May which affected NHS IT systems and several other computers over the globe.  Ministers of British government also said that North Korea is “all but certain” the culprit behind the attack. 

The attack on Youbit is another of the several other attacks cryptocurrency exchanges including bitcoin. A group of hackers stole $64 billion bitcoins last week in an attack at NiceHash marketplace area of Slovenia. Last month, $31 million tether cryptocurrency was looted which indicates that there is a dire need to protecting cryptocurrency through legal methods.