South Korea: the insurance company refused to pay $2.8 million cryptocurrency exchange hacked

South Korea: the insurance company refused to pay $2.8 million cryptocurrency exchange hacked

Yapian Corp., the operator double-cryptocurrency exchange hacked Youbit, was denied insurance compensation in the amount of $2.8 million, which the exchange has planned to obtain for a hacker attack, which has lost about 17% of its assets.

The second in 2017 hacker attack on Youbit in mid-December led to the fact that the exchange ceased operations and declared bankruptcy. 75% of customer assets were available for withdrawal, and the rest had to be on hold until the end of the bankruptcy proceedings. Before Youbit, which used to be called Yapizon, has undergone to hacker attack in April last year. Then unknown persons have stolen about 4,000 BTC. Local media linked the attack with the actions of North Korean hackers.

In a press release dated March 28, Yapian says that DB Insurance, the insurance provider Yapian, refused to pay on the grounds that Youbit violated the terms of insurance and has not provided certain information at the time of signing the insurance contract. According to the management Youbit, DB Insurance is just looking for an excuse to refuse payment.

The insurance policy was purchased on 1 December, just weeks before the break-in and cover the damages up to $2.8 million with an annual premium of about $244 000.

The insurance company DB Insurance, which is one of the largest in South Korea, has confirmed that in early February Yapian was denied the insurance claim, but the reason for the refusal were not disclosed. According to the Wall Street Journal guide Yapian decided to sell the business, and on March 21, personal data was transferred to Coinbin.

Cryptocurrency is a popular form of investment in South Korea. A recent poll by the Korean Central Bank showed that 40% of the young population wants to own the cryptocurrency.

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