Japanese crypto exchange Zaif hacked, losses in the range of $60 million reported 23513 Zaif crypto exchange hacked
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Rakesh Ranjan Parashar
Sep 20, 2018 at 5:20 AM

In a major development, Japanese crypto exchange Zaif has been on the receiving end of a hacking incident last week, local media has reported.

The hack, which occurred on Sept. 14 but was not discovered until Sept. 17, saw the hacker steal 4.5 billion yen from users hot wallets, as well as 2.2 billion yen from the assets of the company, with total losses amounting to 6.7 billion yen or around $59.7 million.

Tech Bureau Inc. which operates the digital currency exchange Zaif said in a press release that the company noticed certain abnormalities on September 17, and the hacking damage was confirmed on September 18. After that, the crypto exchange reported the matter to the regulatory authority (FSA), who are looking into the matter.  Hackers stole 5,966 bitcoins (BTC) in addition to some Bitcoin Cash (BCH) and MonaCoin (MONA). The exact figure for the loss is still being evaluated.

According to Tech Bureau Inc, “The exchange is striving hard to reconstruct the system while receiving support from Ka- ka engineers, in order to resume early deposits/receipts. The restart of deposit/withdrawal of virtual currency is based on the premise that the safety of the system is confirmed.”

The press release further states that the firm Fisco Digital Asset Group will help Zaif cover lost customer assets by providing 5 billion yen ($44.5 million). Zaif exchange is the 101st largest cryptocurrency exchange in terms of trade volume, according to CoinMarketCap.

This latest breach could have serious ramifications for the crypto industry in Japan. Japan’s cryptocurrency organizations are being increasingly hit with new regulations which seem to be getting more rigid with every hack and scam.

Earlier this year in January, the Coincheck hack shook the whole crypto world. The Coincheck hack is believed to be the largest cryptocurrency exchange theft in history, eclipsing even the infamous Mt. Gox theft. Coincheck later confirmed that the hacker was able to steal approximately 523 million XEM —worth $530 million at the time of the theft.

The theft saw Japan’s finance minister demand the FSA to better supervise cryptocurrency exchanges in order to prevent customer losses.

See Also: Japan’s regulator will not impose undue restrictions on cryptocurrency industry: report

Leading Asian Cryptocurrency Exchange Coincheck To Expand Its Footprint In the US

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