[2014-09-12]Hacked South Korean Bitcoin Exchange Yapizon Offers IOUs

wmabern

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Quote from: TwoTimes on May 02, 2017, 03:35:40 PM

This past week a South Korean bitcoin exchange called Yapizon was hacked for 3816 BTC or roughly $5.3 million USD worth of bitcoins on Saturday, April 22. The exchange has made a statement concerning the hack and plans to offer an IOU token to its customer base to cover losses.

According to the bitcoin exchange Yapizon, four of the company’s hot wallets were compromised on April 22, between 2:00 to 3:00 in the morning. Yapizon says roughly 36 percent of funds were stolen and they have filed a complaint with the Cyber Investigation Division of Seoul, the local police. After the hack, Yapizon says they have spoken with their legal team and have decided to split the loss among its customer base.

Read More Here >>> https://news.bitcoin.com/hacked-korean-bitcoin-exchange-yapizon-offers-ious/

What a nice, understanding "customer base". LOL Tongue

wmabern

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Quote from: iamTom123 on May 06, 2017, 08:12:23 PM

This incident can cement that fear of some people to put currency in the exchange. I mean if a Korean exchange can get hacked (assuming this is not just an insider job), how much more with other exchange located in a poorer country? This can affect our confidence on an exchange company and I hope it won't happen with the others.

And I am thinking...is it not possible that there can be an insurance for such an incident? Rather than let the loss be taken by their users, can it be not taken cared by an insurance company?

Anyone with a lick of sense who has been on this message board (or any other internet access) more than a week should KNOW that an exchange is EXACTLY that, an EXCHANGE, not a freaking piggy bank. I'm sorry that anyone loses money but maybe a few more people will learn the lesson.

Gilf

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Quote from: geertbaarstra on May 09, 2017, 11:41:23 AM

the so called exchange insurance job is a real risk that must be mitigated considering the rise of bitcoin and altcoins, i have a feeling poloniex could be hacked any day now and the compensation to be a token called polo

Most likely it will happen. I have already ceased to be surprised that even the administration can be accused of hacking.

geertbaarstra

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the so called exchange insurance job is a real risk that must be mitigated considering the rise of bitcoin and altcoins, i have a feeling poloniex could be hacked any day now and the compensation to be a token called polo

pixie85

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Quote from: crockoo on May 03, 2017, 05:25:57 PM

Quote from: RomanJDS on May 02, 2017, 03:45:33 PM

It's very suspicious. I believe that it was insider attack

Do you think that in North Korea this can happen? It seems to me that this is a problem because of the US in China.

It was a SOUTH Korean exchange. Do you even read the threads before answering? Cheesy

An insider attack is very likely because they had a number of wallets and all of them were hacked. Really sloppy of them or an employee took off with the money.

iamTom123

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This incident can cement that fear of some people to put currency in the exchange. I mean if a Korean exchange can get hacked (assuming this is not just an insider job), how much more with other exchange located in a poorer country? This can affect our confidence on an exchange company and I hope it won't happen with the others.

And I am thinking...is it not possible that there can be an insurance for such an incident? Rather than let the loss be taken by their users, can it be not taken cared by an insurance company?

TraderTimm

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So they modeled their customer-ripoff-but-no-we'll-pay-you-guys-later strategy from BFX.

Wonderful. So glad the "innovative" and "leading" exchange RipOffinex can inspire our asian brothers.

What a clusterfuck wrapped up in a shit-show.

richardsNY

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By faking a hack I mean that exchange operators can just pretend that they are hacked, while they in fact stole the coins themselves.

Assuming it were indeed hackers, they will not take any risks by mixing the stolen coins. If an exchange gets hacked, it will act immediately and instruct every possible service that would allow the hackers to 'mix' their coins. But even if they did manage to 'mix' their coins, it won't have any effect as the hackers don't gain any form of privacy. All info from these services will be handed over to the exchange, and then to the law enforcement.

Mixing through the mainstream channels won't work. The coins will have to get mixed elsewhere. It could be done in the deep web, it could be done peer 2 peer, where people they are trading with don't know that the coins are stolen, etc. They have enough time to think through everything properly.

Regarding compensation -- they issue tokens/equity in the main business to compensate people. People can hold them till the time the business in question buys them back. That's the whole idea. People don't have any other option than to accept this lame form of compensation. Everything will be paid back in fiat equivalent. Better something than nothing, right?

freebutcaged

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Is that the correct date in the title? or you just an outdated bot?

Quote from: richardsNY on May 03, 2017, 05:39:17 PM

It will require people to have a good amount of patience as according to the profits their business makes, it will take +2 years to fully compensate each account holder that was subject to the haircut. It's of course better than nothing, but this can be a trigger for other exchanges to walk the exact same road. Just fake a hack, and 'compensate' people afterwards by issuing tokens. Very lucrative....

Btw -- OP please fix the date.

What do you mean by faking the hack? can't people track and flag the stolen funds and request every other exchanges not to accept them?
Of course if the hackers mixed the coins immediately before the news coming out then no one can do anything, but I assume if a mixer such as Bitmixer knew the coins were stolen they could keep the logs before the 24 hours is over and logs get deleted forever though if they used Bitmixer at all.

Anyhow they will have to compensate their costumers no matter what either by issuing their own made up tokens or directly via Btc.

richardsNY

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It will require people to have a good amount of patience as according to the profits their business makes, it will take +2 years to fully compensate each account holder that was subject to the haircut. It's of course better than nothing, but this can be a trigger for other exchanges to walk the exact same road. Just fake a hack, and 'compensate' people afterwards by issuing tokens. Very lucrative....

Btw -- OP please fix the date.

crockoo

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Quote from: RomanJDS on May 02, 2017, 03:45:33 PM

It's very suspicious. I believe that it was insider attack

Do you think that in North Korea this can happen? It seems to me that this is a problem because of the US in China.

RomanJDS

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It's very suspicious. I believe that it was insider attack

TwoTimes

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This past week a South Korean bitcoin exchange called Yapizon was hacked for 3816 BTC or roughly $5.3 million USD worth of bitcoins on Saturday, April 22. The exchange has made a statement concerning the hack and plans to offer an IOU token to its customer base to cover losses.

According to the bitcoin exchange Yapizon, four of the company’s hot wallets were compromised on April 22, between 2:00 to 3:00 in the morning. Yapizon says roughly 36 percent of funds were stolen and they have filed a complaint with the Cyber Investigation Division of Seoul, the local police. After the hack, Yapizon says they have spoken with their legal team and have decided to split the loss among its customer base.

Read More Here >>> https://news.bitcoin.com/hacked-korean-bitcoin-exchange-yapizon-offers-ious/

Topic: [2014-09-12]Hacked South Korean Bitcoin Exchange Yapizon Offers IOUs (Read 16766 times)