Japan’s cryptocurrency exchange Zaif hacked for £45.49 million ($60 million)

Zaif, one of Japan’s leading cryptocurrency exchanges, has admitted that it fell victim to a hack amounting to a staggering £45.49 million ($60 million).

Zaif users started experiencing issues with withdrawals and deposits on September 14, but it wasn’t clear whether it was something to do with maintenance issues or not. However, Zaif exchange discovered that their hot wallets were breached, and the culprits have managed to escape with £45.49 million ($60 million).

Bitcoin, Monacoin, and Bitcoin Cash stolen

According to Zaif, the cryptocurrencies that were stolen during the hacking incident included 5,966 bitcoins (BTC), and an undisclosed amount of Monacoin (MONA) and Bitcoin Cash (BCH). The estimated value of the lost coins as per the company’s investigation is the equivalent of around 6.7 billion yen, roughly £45.9 million.

The impact on customer’s digital assets

Amongst the £45.49 million (6.7 billion yen) stolen, Zaif says that £14.9 million of the $45.49 million lost was its own digital assets, and the remaining amount belonged to customers, approximately £30.55 million.

Once Zaif confirmed that their exchange had been breached, they reported the matter to the Treasury Department, analysed the cause, and declared it as a criminal case to the authorities. The company further noted that they are now striving to secure the lost financial resources of customers.

FISCO Digital Group steps in

Zaif has confirmed today that their asset reserves amount to roughly £16.2 million. To improve on this position, they have concluded an agreement with FISCO Digital Group Co., to acquire £32.4 million as an investment in return for a majority share of their stock to keep the exchange operating healthily.

Additionally, the company has also entered into a deal with Kaica Corporation for technology to further improve the security of their exchange.

Japan’s cryptocurrency exchanges have been under close regulatory scrutiny

Since the hacking of a Tokyo-based crypto exchange, Coincheck, in January, cryptocurrency exchanges in Japan have been under close regulatory scrutiny. The Financial Services Agency (FSA) noted that it found sloppy management at numerous crypto exchanges, including a lack of proper security measures to safeguard clients’ digital assets.

This latest hack on Zaif is indicative of the FSA’s observations.

James

View posts by James
James is a cryptocurrency enthusiast, an advocate for the development and exposure of blockchain technology, and believes in the use of digital assets for the good of the society. He has been writing about crypto since he first learnt about cryptocurrencies in 2010. Initially, he was attracted by the disruptive economic and social implications of virtual currencies and blockchain technology, and over the years he has dedicated himself to learn everything he can about the industry.

Leave a Reply

Your email address will not be published. Required fields are marked *

Copyright © CryptoSuper.market 2018. All rights reserved.
Scroll to top