South Korean Crypto Exchange Declares Bankruptcy Citing Embezzlement

South Korean cryptocurrency exchange Coinbin has declared bankruptcy after suffering millions of dollars in losses, in part due to claimed embezzlement, CoinDesk reported. Coinbin published a notice on its website on Wednesday, stating that “increased debt” and “government regulation” led to the firm having to halt its business operations. Specifically, it said regulators’ suspension of its ability to issue virtual accounts to users was part of the cause, as well as increased operating expenses and liabilities from its collapsed subsidiary exchange Youbit. A report from Business Korea on Friday indicated that Coinbin suffered estimated losses of 29.3 billion won (or $26 million). According to the notice, Coinbin halted all crypto and cash withdrawals at 3:00 pm on Wednesday, and asked users to not deposit any more funds in their accounts. “The settlement of cash and [cryptocurrencies] will be carried out by all bankruptcy procedures,” it added. The exchange further cited “corporate executive moral hazard” as one of the reasons for its bankruptcy. Read more