Japan-Based Zaif Exchange Hacked For $59 Million (6,000 BTC)

Japanese cryptocurrency exchange Zaif was hacked yesterday for a total of 5,966 bitcoin, losing roughly 6.7 billion yen (about $60 million worth of cryptocurrency).


Japanese cryptocurrency exchange Zaif was hacked yesterday for a total of 5,966 bitcoin, losing roughly 6.7 billion yen (about $60 million worth of cryptocurrency).

This latest development is another shock for the country as exchanges in Japan have suffered several major attacks since the start of the year – the Coincheck hack being the biggest.

Zaif loses millions of dollars in the hack

Reports have pointed out that the Osaka-based cryptocurrency exchange discovered hack two days ago. It is now working hard to secure funds to reimburse the account of the affected users.

The exchange confirmed the hack on September 18 after it contacted the authorities and reported the breach.

Following the hack, the team had to suspend deposits and withdrawals, with the staff working to ensure that the hackers have been successfully locked out of the network, and ensuring the security of the rest of their clients.

The licensed exchange, which is operated by Tech Bureau, explained that after investigating into the incident, it discovered that the hackers had unauthorized access to its hot wallet and stole roughly $60 million in cryptocurrencies including Bitcoin, Bitcoin Cash, and MonaCoin.

The exchange added that it has yet to ascertain how many Bitcoin Cash tokens were stolen by the hackers – the reported number of bitcoin stolen is said to be nearly 6,000. The Bitcoin stolen from the exchange amounted to roughly $37.8 million.

The exchange further added that amongst the 6.7 billion yen stolen, 2.2 billion yen was its personal asset while the remaining 4.5 billion were the customer funds – the exchange is now seeking for funds to pay back the affected customers.

The company revealed a partnership with Japan-listed firm Fisco, who will pay the sum of $44.5 million to secure a major stake in the company. These funds would be used to settle customer losses.

The parent company has already opened a criminal case with the authorities as it looks to further investigate the issue. Zaif has been accused of having a very poor technical team.

Earlier this year, the Zaif revealed that it encountered a system glitch which made it possible for users to temporarily acquire trillions of dollars’ worth of Bitcoin (BTC) for free. The glitch allowed sixteen customers to trade the yen for cryptocurrencies at the rate of 0 yen per cryptocurrency.

Second Japanese hack this year

Japanese cryptocurrency exchanges have been the target of hackers this year, with this recent attack the second high profile in the country.

The hack of Coincheck is the biggest hack in the history of the cryptocurrency market, with the exchange seeing losses of more than $500 million in NEM tokens.

The country’s Financial Services Agency (FSA) was forced to toughen its regulation of exchanges as it looks to secure user funds.

The FSA issued an order to Tech Bureau to improve its security and infrastructure back in March, with the security of its platform and anti-money laundering enhancement emphasized upon.

This hack may be an indication that the exchange has not done what was required in terms of security.

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