$59 Million Worth Of Crypto Currency Hacked From A Japanese Exchange

About $60 million worth of crypto currency (6.7 billion yen) has been stolen once against from another Japan based crypto currency exchange after it was hacked. The exchange lost 5,966 bitcoins was among the hacked crypto currencies.

The Tech Bureau operates the exchange which is called the Zaif. The exchange said in a statement on Thursday that the first instance that the exchange became aware of the hacking was by noting an unusual outflow of funds on the platform at about 17:00 Japan time on September 14. Following this incident, asset deposit and withdrawal services in the exchange were suspended by the exchange.

While the transactions were stopped at the exchange by Tech Bureau, an internal investigation was immediately initiated by the operators. The results of the investigations revealed that roughly $60 million in bitcoin, bitcoin cash, and MonaCoin had been stolen by hackers who had somehow gained unauthorised access to the hot wallets of the exchange. However the exchange operators were unable to confirm the exact amount of bitcoin cash that were stolen.

In the statement the crypto currency exchange added that because it has a reserve asset that is worth about 2.2 billion yen (or $20 million), it has been able to come to an deal with a Japan-listed company named Fisco which will make an investment of about $44.5 million in the exchange against giving of a major share of ownership of the exchange.

Tech Bureau has field the hacking as a criminal incident with the local authorities for further investigations because the exchange operators believed that the criminal investigation was apt for the hackers’ attempt to access the funds.

This is the second instance that a hacking incident has taken place in a Japanese crypto currency exchange this year after the $520 million worth hack of NEM crypto currencies tokens in January this year as reported by the exchange Coincheck.

A series of inspections has been launched on cryptocurrency exchanges in Japan to ensure that the security of crypto currencies by the Japanese financial watchdog the Financial Services Agency (FSA) after the incident at Coincheck.

Tech Bureau was issued an order in March this year to imp[rove its business practices with specific reference to security and anti-money laundering measure enhancement by the FSA.

According to CoinMarketCaqp, in terms of trade volume, the Zaif exchange is the 101st largest crypto currency exchange in the world.

Another incident earlier this year was reported by Zaif when the exchange admitted to noticing a “system glitch” which allowed the users of the exchange to temporarily acquire trillions of dollars worth of Bitcoin. The incident had taken place in February. The breach allowed 16 of the exchange’s users to accidentally be able to “trade” yen for crypto currency at a rate of 0 yen per coin.

(Adapted from Coindesk.com & CoinTelegraph.com)

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