Coinbin the cryptocurrency exchange platform based out of South Korea has chosen “employee embezzlement” the reason for their bankruptcy in their official request for bankruptcy.
The exchange has also confirmed that they have filed a bankruptcy request after a chain of events that found their employees responsible for various misconducts.
The exchange is currently suspected to be operating in debt of around twenty-six million dollars ($26m). In addition, the exchange had stopped all operations this past Friday. All trading accounts have been frozen.
The Chief Executive Officer (CEO) of the exchange Park Chang-Kyu also confirmed that the exchange is under heavy debt after an employee embezzled from the exchange.
The investors, however, would be receiving all the funds they have vested in the exchange through the insurance procedures. The exchange is suffering the same fate a second time.
The exchange was earlier names Youbit, at that time, a seventeen million dollars ($17m) debt was raised after a hack that the insurer had refused to pay. It has also been reported that the employee responsible for the embezzlement is one of the senior employees who continued after Youbit was changed into Coinbin.
The said employee happens to be the person in-charge of cryptocurrency storage and management.
