Yapian Corp., the operator of twice-hacked crypto exchange Youbit, has been denied their insurance claim of $2.8 mln for of an alleged 17 percent of their assets, the reported March 29.
The mid-December security breach of South Korean (BTC) exchange Youbit led the company to file for bankruptcy, with 75 percent of customers’ holdings available for withdrawal and the rest on hold until the end of the bankruptcy proceedings. The hack has been , along with several other hacks of South Korean crypto exchanges. Youbit, which formerly went by the name Yapizon, in April of last year.
A from March 28 says that DB Insurance, Yapian’s insurance provider, denied the payout due to what they cited as a failure on Youbit’s behalf to disclose pertinent information before purchasing the insurance policy, which Youbit sees as an excuse to not honor the policy.
The insurance policy , only a few weeks before the mid-December hack, covering up to $2.8 mln in damages at an annual premium of around $244,000.
The press release states that “cyber comprehensive insurance” covers eight risks including; “data loss or theft, information maintenance violation liability, personal information infringement damage, cyber threat, and network security liability” Youbit’s insurance policy covered five out of these eight including; “information maintenance violation liability, personal information infringement damage, and network security liability.”
DB Insurance confirmed that they denied Yapian’s insurance claim in early February, but has not publicly stated a reason for the denial. WSJ notes that Yapian in currently being acquired by crypto wallet Coinbin.
Cryptocurrencies are a popular form of investment in South Korea. As by Cointelegraph, nearly a quarter of in their 20s are “eager to invest in crypto”.
Published at Fri, 30 Mar 2018 23:53:29 +0000
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