The South Korean cryptocurrency exchange Coinbin, which took over hacked Youbit, has declared bankruptcy after detection financial embezzlement of 29.3 billion won ($ 26 million).
Park Chan-kyu, CEO of Coinbin, declared bankruptcy in its Seoul office on Feb. 20. All crypto and cash withdrawals from Coinbin were halted at 3:00 p.m. on the day. Cryptocurrency and cash settlements would be done in accordance with bankruptcy procedures.
According Park Chan-kyu, an executive in charge of managing cryptocurrencies, who previously served as the CEO of Youbit, had committed dereliction of duty and embezzled company funds. He had removed hundreds of cryptographic keys to coin wallets containing hundreds of Bitcoin and lost the cryptographic key to a wallet containing more than 100 Ethereum coins last November. Park insists that these actions were not an accident but an intentional act.
Coinbin acquired Youbit at the end of 2017, when the crypto exchange was suffering a hack of 17 billion won.