Japanese cryptocurrency exchange, Zaif was hacked according to reports. In fact, hackers stole $59 million worth of cryptocurrencies.
Security Breached by Hackers
A security breach occurred on September 14. The hackers stole 4.5 billion yen from the hot wallets of the users, and 2.2 billion yen from the company’s assets.
The total loss amounts to approximately 6.7 billion yen which is nearly $59.7 million. Tech Bureau Inc operates Zaif and stated that the exchange identified a server error on September 17. Soon after this, Zaif suspended all deposits and withdrawals.
The exchange then realized that the error was, in fact, a hack. The company reported the event to the FSA (Financial Services Agency), the Japanese regulator.
The Path Ahead
Fisco Digital Asset Group promised to assist the exchange in covering the lost customer assets stolen by the hackers. Fisco will provide Zaif with 5 billion yen ($44.5 million) meant for reimbursement of the clients.
Furthermore, as a result of the fiasco the company came to an agreement with Fisco to remove more than half if it’s corporate auditors and directors. Furthermore, Fisco became a majority shareholder in the company in exchange for its assistance.
The Zaif exchange is actually the 101st largest crypto exchange considering its trade volume, according to data from CoinMarketCap.
Moreover, Zaif earlier admitted to a “system glitch” which allowed its users to acquire trillions worth of Bitcoin for free in February this year. In addition, nearly 16 customers were able to accidentally “trade” yen for cryptocurrency at a rate of 0 yen per coin. It is disturbing to realize how easily hackers can take advantage of the system, especially when faced with slack security.
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