Hacked Korean Cryptocurrency Exchange Youbit’s Insurance Claim Is Denied

Ethereum

A leading South Korean insurance firm has rejected a claim from the cryptocurrency exchange Youbit, which was seeking a $2.8 million payout following a hack in December 2017 that caused it to declare bankruptcy.

DB Insurance, the company that insured the South Korean cryptocurrency exchange Youbit, has denied a claim that the exchange filed after a hack apparently drained the marketplace of “about 17% of [its] total assets.”

The platform had reportedly said that the insurance money, which could have added up to $2.8 million, would be used to pay out affected customers.

Youbit’s parent company, Yapian, claimed that the insurer had accused it of rushing to acquire the policy, which had taken effect mere weeks before the hack, and of failing to make certain important disclosures during the negotiating process. Yapian denies both charges and accuses DB Insurance of fabricating them in order to avoid having to cover its claim. As far as ETHNews is aware, DB Insurance has not leveled the charges publicly.

The December hack of the exchange was the second in 2017. North Korean actors have been blamed for that heist as well as one which occurred that April, when the platform was known as Yapizon.

Youbit, which announced shortly after the second theft that it would declare bankruptcy, is reportedly being acquired by another Korean cryptocurrency trading firm, Coinbin. 

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