South Korea crypto exchange files for bankruptcy after employee embezzlement, $26M in losses

Another day. More exchange drama.

Coinbin, the South Korea-based digital asset exchange, has filed for bankruptcy. The business, which bought the notably hacked Youbit exchange, reported losses of more than $26 million, as reported by CryptoCoinNews. The crypto world is infamous for its exchange headaches, which include shutdowns, outages, and hacks — including the $500M-plus hack of Coincheck last year. In total, close to a $1 billion of crypto was hacked from crypto exchanges in 2018, as reported by Forbes.  

As for Coinbin, the firm's most recent woes are tied to embezzled funds — not hacked funds. "We are preparing to file for bankruptcy due to a rise in debt following an employee’s embezzlement," CEO Park Chan-kyu said. The employee allegedly commandeered a wallet holding 100 Ethereum. 

The news is on the heels of the death of the CEO of QuadrigaCX’s. His passing left customers without access to over $150M as he was allegedly the only person with access to the crypto keys to unlock funds. 

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Frank Chaparro covers the intersection of financial markets and cryptocurrency as Editor-at-Large. Since joining the publication in 2018 as its first reporter, he has played a key role in building The Block into a leader in financial journalism and research. He leads special projects, including The Block's flagship podcast, The Scoop. Prior to The Block, he held roles at Business Insider, NPR, and Nasdaq. For inquiries or tips, email [email protected]