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Hackers steal $2.3M from crypto exchange Bitpoint

Maya Mandz | Jul. 15, 2019
Hackers steal $2.3M from crypto exchange Bitpoint

July 15, 2019, | AtoZ Markets - As the local English daily reports, the Japanese crypto exchange Bitpoint, which was recently hacked, has discovered that another 250 million yen ($2.3 million) in crypto is missing.

Recalling the history of crypto exchange Bitpoint hack 

Bitpoint is a Japan-based cryptocurrency exchange, established in 2016, with 4,430 million yen (including capital reserve) capital. The exchange offers to trade for five cryptocurrencies: bitcoin, bitcoin cash, ether, litecoin, and XRP.

The major shareholder of Bitpoint, is Remixpoint, a Japanese company that develops and sells energy management solutions and energy-saving support consulting services.

According to the latest reports, due to the security breach, which was detected on July 11, Bitpoint lost around 3.2 billion yen (almost $30 million) in cryptocurrencies.

Remixpoint has reportedly suspended all trading services following the incident, on July 12 morning. The same day Bitpoint published an official notice and apology about the fraudulent outflow of virtual currency addressed to the customers. 

The announcement reads : 

According to Bitpoint the hot wallet which the funds were stolen from contained five different cryptos including bitcoin, bitcoin cash, and XRP. 

It remains unclear whether the crypto assets in crypto exchange Bitpoint cold wallet were also stolen. Remixpoint stated in its official announcement that $23 million of the illegal outflow belonged to its customers, while 1 billion ($9.2 million) belonged to the exchange.

Hackers steal another $2.3M from crypto exchange Bitpoint

As per Japanese English publication, the crypto company found the stolen digital assets on overseas exchanges that were using a trading system provided by Bitpoint Japan.

The firm revealed to the local media that the recent discovery brings the total sum of lost founds down from 3.5 billion yen ($32 million) to 3.02 billion yen ($28 million).

As per media reports, Bitpoint was one of the exchanges to receive a business improvement order from Japanese financial authority, the Financial Services Agency (FSA), in June of last year. One of the main FSA concerns was the crypto companies compliance with Anti-Money-Laundering and Know-Your-Customer policy. 

Are crypto exchanges hacked more often?

Bitpoint is not the first crypto exchange which has experienced a serious loses due to the bad actors' activities. Last year, in September, Zaif, another licensed exchange under the Japanese Financial Services Agency, was hacked for $60 million worth of cryptocurrencies.

It is also worth to mention, Coincheck 2018 year hack, which resulted in more than $520 million worth of NEM tokens being stolen from Coincheck’s low-security hot wallet. Back then Coincheck crypto theft was called one of the biggest cybersecurity hacks in history.

After the hack attack, the platform during the press conference informed the public that it would compensate each stolen token at a rate $0.81 per token.

The overall amount had accounted for almost $420 million. The crypto community suggested back then, that Coincheck’s hack was the main reason behind the Japanese financial authorities to tighten regulation and verification measures toward the local crypto exchanges. 

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Disclaimer: The views and opinions expressed in this article are solely those of the author and do not reflect the official policy or position of AtoZ, nor should they be attributed to AtoZMarkets.