South Korean cryptocurrency exchange Coinbin, previously known as Youbit, declared its plans to file for bankruptcy after losing $26 million due to employee’s embezzlement.

Coinbin, which acquired Youbit cracked by hackers, is preparing to file a bankruptcy notice. The exchange owes users nearly $30 million. Coinbin reported that it was a forced decision to cease operations due to “rise in debt”, as well as “government regulation”.

According to Park Chan-kyu, CEO of Coinbin, the exchange decided to initiate a bankruptcy procedure after it unveiled that company funds were embezzled. An unnamed executive in charge of managing cryptocurrencies reportedly removed hundreds of cryptographic keys to coin wallets with hundreds of bitcoins. The damage is estimated at 29.3 billion won ($26 million).

Coinbin acquired Youbit in 2017, after Youbit fell victim to two hacker attacks leading to the theft of cryptocurrency assets. On 20 February, all cryptocurrency and cash withdrawals from the exchange. Payments to users will be made in accordance with South Korean law and bankruptcy procedures.

The first cyber attack on Youbit occurred in April 2017. About 4000 BTC were stolen at that time. In December 2017, the second cyber attack was committed on Youbit.

North Korean hackers were suspected of both attacks.