Hackers stole $5M from Bitcoin exchange platform

Unknown hackers stole about 3800 bitcoins which worth around $5 million from Yapizon, South Korean Bitcoin exchange platform.

Unknown hackers stole about 3800 bitcoins which worth around $5 million from Yapizon, South Korean Bitcoin exchange platform.

The attack was on April 22, 2017, but the company decided to keep the hacking attack a secret for a couple of weeks before making it public. The hackers were able to compromise the security of the Bitcoin exchange platform, and the hack resulted in them successfully hijacking four different Bitcoin wallets belonging to Yapizon.

Yapizon, cryptocurrency exchange platform, has published details about its compensation program for the users that were affected. By the similar platform Bitfinex hacking incident last year the company has made a decision to distribute the losses across the customer base. After losing 37 percent of its total assets, Yapizon is passing it on to all affected and unaffected users.

The customers maintaining wallets on Yapizon will see their total cryptocurrency balance replaced with “Fei” tokens and deducted by 37 percent. These tokens, just like BFX tokens will be the same amount owed by the company to its users and Yapizon will purchase the “Fei” tokens from its holders over a period of some time with the profit generated from future operations.

Rest of the data including private information belonging to the users were not compromised while the company did lose some fortune in cryptocurrency. A publication has stated that the platform had followed few great practices by storing sensitive information in its encrypted form on different servers to ensure data integrity.

Yapizon is one of the many exchange bitcoin companies of hacking attacks in the business of cryptocurrency industry.  It’s high time platforms, both large and small implemented advanced cyber security infrastructure to ensure users funds and safety of the company.