Thu, 18 Oct 2018
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Tokyo

Crypto exchange Zaif hacked, $60 million stolen

By Sheetal Sukhija, The Japan News
20 Sep 2018, 23:58 GMT+10

TOKYO, Japan - The Japanese cryptocurrency exchange Zaif revealed a massive hacking attack on Thursday, in which the exchange is believed to have lost about 6.7 billion yen ($60 million) worth of cryptocurrencies.

The Zaif exchange, which was registered with the government last year, was said to have been hacked for two hours last week. 

The operators of the Japanese digital currency exchange, Tech Bureau Corp. said in a statement on Thursday that a server for its Zaif exchange was hacked for two hours last week, during which hackers stole 6.7 billion yen ($60 million) worth of cryptocurrencies.

According to the operator, some digital currencies got unlawfully relayed from a "hot wallet" (where virtual coins are stored at such exchanges).

Zaif owner Tech Bureau Corp. further added that the hack took place on the evening of September 14 and that of the 6.7 billion yen in cryptocurrencies that was stolen, around 4.5 billion yen belonged to customers.

It said that the remaining 2.2 billion yen was company assets.

The operator also revealed that currencies affected included bitcoin, MonaCoin and Bitcoin Cash.

The Tech Bureau statement acknowledging the hack said, “We humbly apologise for betraying the trust of all our customers who have entrusted us with their precious assets."

The company vowed that it would mitigate the loss by compensating affected users.

It will also sign a deal with Fisco that would provide financial support in return for majority control of the company.

According to reports, Japan’s Financial Services Agency has now called on Tech Bureau to compile a report detailing how the incident took place. 

Further, reports have noted that the agency is now planning an on-site inspection of company premises.

So far this year, the hacking of Zaif became the fifth major hack of a cryptocurrency exchange.

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