Home News Bitcoin Japanese Crypto Exchange Zaif Reports Hack; Almost 6.7 Billion Yen Worth Crypto...

Japanese Crypto Exchange Zaif Reports Hack; Almost 6.7 Billion Yen Worth Crypto Stolen

September 20, 2018 12:45
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Japanese cryptocurrency exchange Zaif announced today that around 6.7 billion Japanese Yen (JPY) was stolen due to an illicit breach of their security system. Although the hack was supposed to have taken place on September 14, it was detected on September 17.

The following day the exchange had reported the loss to the Treasury Department and other concerned authorities.

In a post, the exchange said, “Since September 14, Heisei 30, some services such as deposit / withdrawal of virtual currency are not in operation at our service, which has inconvenienced our customers. As a result of our survey, it turned out that some of the deposits / withdrawal hot wallets were hacked by unauthorized access from the outside and part of the virtual currency managed by us was illegally discharged to the outside .
This situation will result in betraying the trust of all our customers who trust our company and keeping valuable assets, and we apologize for lying down.”

It added that the exchange will strive its best to recover the assets. It said, “Naturally, it is a top priority that we do not suffer damage to customer assets. We will promptly notify the Financial Services Agency (FSA) and the investigation authority after the abovementioned damage and also investigate the cause with the efforts of a third party including Kaichi Corporation also within the company, finance equivalent to customer assets we strive to secure.”

Explaining what went down the exchange stated that the customers’ virtual currencies were stored on a hot wallet. There was unauthorized access from September 14 at around 7 pm on the server that manages the hot wallet for the deposit and withdrawal, and the virtual wallet managed by the hot wallet Currency (BTC, MONA, BCH) was illegally remitted.

The exchange said that since the matter is a criminal case, the company has already been requested to file a damage report to the investigation authorities, and in order to prevent the same kind of crime in the future, they will not be delving deeper in the report.

The post said, “Among the virtual currencies equivalent to about 6.7 billion yen lost, our company’s unique assets are approximately 2.2 billion yen, and the virtual currency equivalent to customer’s assets is about 4.5 billion yen. After discovering this case, we are striving to secure financial resources not to damage the customer’s assets.”

Interestingly, Zaif was one of the exchanges which had been warned to improve its business in six areas, in July this year by the FSA.

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