It came eight months after nearly 4,000 bitcoin -- then valued at 5.5 billion won ($5 million) and nearly 40 percent of the exchange's total assets -- were stolen in a cyber attack blamed on North Korea.
"We will close all trades, suspend all deposits or withdrawals and take steps for bankruptcy," the exchange said in a statement which did not assign blame for the latest attack.
All its customers will have their cryptocurrency assets marked down by 25 percent, it said, adding it would do its best to "minimise" their losses by using insurance and selling the remains of the firm.
The exchange -- founded in 2013 -- brokered trades of multiple virtual currencies including bitcoin and ethereum.
It is the first time that a South Korean cryptocurrency exchange has gone bankrupt.
Investing in virtual currencies has become hugely popular in the hyper-wired South, whose trades account for some 20 percent of global bitcoin transactions.
About one million South Koreans, many of them small-time investors, are estimated to own bitcoin. Demand is so high that prices for the unit are around 20 percent higher than in the US, its biggest market.
Global bitcoin prices have soared around 20-fold this year.
Concerns over a potential bubble have unnerved Seoul's financial regulators, who last week banned its financial institutions from dealing in virtual currencies.
(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)
Business Standard has always strived hard to provide up-to-date information and commentary on developments that are of interest to you and have wider political and economic implications for the country and the world. Your encouragement and constant feedback on how to improve our offering have only made our resolve and commitment to these ideals stronger. Even during these difficult times arising out of Covid-19, we continue to remain committed to keeping you informed and updated with credible news, authoritative views and incisive commentary on topical issues of relevance.
We, however, have a request.
As we battle the economic impact of the pandemic, we need your support even more, so that we can continue to offer you more quality content. Our subscription model has seen an encouraging response from many of you, who have subscribed to our online content. More subscription to our online content can only help us achieve the goals of offering you even better and more relevant content. We believe in free, fair and credible journalism. Your support through more subscriptions can help us practise the journalism to which we are committed.
Support quality journalism and subscribe to Business Standard.