Bitcoin Exchange Yapizon Hacked for $5.5 Million

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Yapizon

The management team of South Korean bitcoin exchange called Yapizon officially confirmed that an unknown group of cybercriminals hacked the exchange’s servers and stole 3,816 bitcoins (more than $5.5 million) from four main wallets.

According to the official statement, the incident occurred on April 22, between 2:00 to 3:00 in the morning. The hackers managed to steal 36.594% of the Yapizon’s bitcoin reserves.

Yapizon is planning to spread losses from this security breach equally amongst all user accounts. As a result, each of Yapizon’s users will lose 36.594% of their funds. Yapizon decided to issue a Fei token, which will allow users to reclaim their losses by obtaining exchange’s profits in long term. The exchange stated that traders will be credited with 1 Fei token per $78 of loss. 1% of Fei tokens will be equivalent to 1% of Yapizon’s profit.

“As seen in the security breach of Ethereum investment fund DAO that resulted in the loss of 3.6 million ETH and the hacking attack of Bitfinex which ultimately led to the loss of $70 million, Yapizon can certainly recover from the recent hacking attack. Yapizon entered the cryptocurrency industry four years ago and it is expanding services and operations rapidly across the region. From January to March of this year, Yapizon generated over $325,000 in profit and the company projects a total profit of $1.8 million by the end of 2017. If customers trust in Yapizon and its practices, the company believes it can make up for the losses of all customers relatively soon,” said the Yapizon team.

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