The South Korean cryptocurrency exchange, Coinbin, has filed for bankruptcy owing users nearly $30 million, Coinbin acquired exchange Youbit, correspondence from the firm confirmed on Feb. 20.

Coinbin, that took possession of Youbit in 2017,  is closing operations as the results of embezzlement from a senior government, native media beside English-language resource Business Korea later reported.

“We are making ready to file for bankruptcy because of an increase in debt following an employee’s embezzlement,” the publication quoted CEO Park Chan-kyu as saying.

According to obtainable information, the figure in charge of cryptocurrency management is at the middle of the scandal, having antecedently served as CEO of Youbit. The latter ceased to exist in Dec 2017 when 2 major hacks created operations no longer attainable.

The executive, referred to as Lee, reportedly appropriated the private keys of many hundred Bitcoin (BTC) wallets, whereas claiming to lose the key for an Ethereum (ETH) wallet containing one hundred ETH.

The total funds missing presently amount to 29.3 billion won ($26 million), of which 2.3 billion ($2 million) is reportable as lost.

The revelations come because the cryptocurrency business is already digesting the fallout from another exchange shutdown, Canada’s QuadrigaCX.

Currently the main focus of legal proceedings and diverse rumors following the death of its CEO in Dec 2018, Quadriga owes its users around $190 million in crypto and fiat currency.

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