Zaif Exchange Lost $60 Million In Its Recent Hack

Sep 20, 2018 at 17:00 Update Date :Feb 27, 2019 at 07:46 UTC

Japan-based cryptocurrency exchange Zaif has been hacked and lost 6.7 billion yen which is $60 million worth of cryptocurrency, including around 6 thousand Bitcoins. The team has suspended user deposits and withdrawals, while the Zaif staff is making sure that hacker(s) is out of the network.

According to Zaif, the hack took place on 14 September, between 1700 hours and 1900 hours, when they noticed a usual flow of funds on the platform. The investigators are gathering details about the incident.

As per Zaif, the hackers extracted three types of cryptocurrencies from the ‘hot wallets’ of the company.

[A hot wallet refers to a Bitcoin wallet that is online and connected in some way to the Internet.]

Tech Bureau, who operates Zaif, stated that the hackers had stolen Bitcoin, Bitcoin Cash, and MonaCoin (Japan’s cryptocurrency) which are worth $60 million (6.7 billion Japanese yen). Out of which $37.8 million were Bitcoin funds. Of the 6.7 billions yen stolen, 2.2 billion yen (32%) were Ziaf funds, while 4.5 billion yen were funds of the customer.

The exact amount of Bitcoin Cash and MonaCoin stolen is still unknown. They further said that it is a criminal case because of the unauthorized fund access and they have reported to local authorities for the investigation.

Financial Services Agency (FSA) of Japan advised the operator to submit a report on the incident and plan an inspection to perform on the company. Tech Bureau promised to compensate users who lost their money in the hacking and signed a paper with Fisco Ltd. unit in exchange for selling the majority of the company, a demand of receiving 5 billion yen in financial support. The money is to pay back affected users their compensation.

Well, this is not the only hack that has occurred in Japan’s history. Earlier this year, Coincheck reported that $520 million worth of NEM tokens were stolen by hackers.

Japan’s financial regulator then forced Coincheck to pay back their users. After this hack, FSA has launched numerous inspections on crypto exchange in the country.

As of now, Zaif is rebuilding their system, suspended the deposits and withdrawals. Tech Bureau filled an investigation and didn’t give more details about how the hack happened.

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