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$60 Million Worth Of Cryptocurrencies Stolen In New Exchange Hack

Zaif, a Japanese cryptocurrency exchange recently got hacked with about $60 million worth of cryptocurrencies reported to have been lost in the theft incident. This was revealed in an official press release by Zaif crypto exchange and its parent company, Tech Bureau Inc, on Wednesday, September 19th.

Zaif Cryptocurrency Exchange Hack

Before the official announcement, deposit, withdrawals, and trading on the Zaif exchange platform since September 14th had caused a lot of distress on the users on the cryptocurrency exchange. Though the initial thought was that the platform was under maintenance, it was later discovered that it was a hack.
The cryptocurrency exchange got hacked for 5,996 Bitcoin and an unspecified amount of Monacoin (MONA) and Bitcoin Cash (BCH) cryptocurrencies. The exchange later confirmed that the valuables lost to the hack was worth 6.7 billion Japanese Yen, or approximately USD 59 million.
Meanwhile, the cryptocurrency exchange is yet to restart its internal server since last week after the unfortunate incident. A measure of guarding against further damage from the hack.
Detailing the worth of the hack, Zaif exchange through its parent company Tech Bureau Inc, noted that 4.5 billion Yen worth of cryptos which were stolen were consumer funds, while the rest of the funds, worth 2.2 billion Yen, belongs to the company.
The firm stated in the press release that it had started a discussion with the local authority, informing them of the damage and measures are underway to apprehend the hackers.
Also, the firm is already in contact with the Fisco Digital Asset Group, that has pledged to give 5 billion Yen ($44 million) to the exchange to compensate victims and in exchange will acquire a large stake in the cryptocurrency exchange. The acquisition will include retrenching half of the exchange’s director and auditors. These steps to be taken shows its readiness to correct the havoc caused to the firm by the hack even at a high cost.

Cryptocurrency Hack Trend

The latest hack on the Zaif cryptocurrency exchange joins multiples that the cryptocurrency space has witnessed in recent years. This has been a significant factor dissuading the institutional investors from officially adopting cryptocurrency.
Notably, a few Japanese cryptocurrency exchanges have fallen victim to the large scale of hacks the cryptocurrency space has witnessed. The Mt. Gox, Coincheck, Bithumb, and CoinRail have all been victims in the past.
Recently, there was an introduction of insurance measures for cryptocurrency exchanges in Japan to cover for hack cases such as this, though the development is still evolving.
Japan’s Financial Services Agency has asked Tech Bureau to submit a report on the incident for proper inspection as the agency seek measures to improve the appropriate operation of cryptocurrency exchanges in the country.

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