Japanese crypto exchange Zaif has confirmed that for a total of 18 minutes on February 16, users were accidentally able to “trade” yen for a digital currency at an exchange rate of 0 yen per Bitcoin.
22 February, AtoZForex – One of the popular Japanese cryptocurrency exchanges, Zaif, has confirmed the “system glitch” on its platform. Earlier last week, thanks to this glitch, customers were able to buy trillions of dollars worth of Bitcoin for free.
Japanese Crypto Exchange Zaif Confirms "Free Bitcoin" System Glitch
According to the local reports, the cryptocurrency exchange has informed users about the glitch on their website. The official announcement has explained that for a total of 18 minutes on February 16, users were accidentally able to “trade” yen for a digital currency at an exchange rate of 0 yen per Bitcoin.
The local media also states that a total of sever users were able to ‘buy” cryptocurrency for free. It is also known that the exchange has managed to cancel the transactions. Moreover, reports state that one of the users tried to sell 2,200 trillion yen (about $20 trillion) in Bitcoin before the exchange has handled the problem.
Twitter posts from Zaif further mention the commentary from users, who criticize the poor backend performance of the exchange. Moreover, a number of users also complained about the lack of support.
Crypto Risks for Japan
The issues with Zaif exchange’s system appear in time when the exchange has been placed under the increased regulatory oversight following the $530 million hack of another Japanese exchange Coincheck.
The $530M Coincheck cryptocurrency theft was one of the biggest cybersecurity hacks in history. The theft also points out the vulnerabilities in trading an asset that global authorities are trying to get hold of. The hack also highlights the wider risks for Japan as it looks into leveraging the fintech industry to boost the economic growth.
The Financial Services Agency (FSA) has ordered Coincheck to carry out a number of improvements. That time, the cryptocurrency exchange has suspended all trading except for Bitcoin following the $530M worth of NEM coins theft. Following the hack, Coincheck stated it would reimburse about 90 percent of internal funds. The details are not yet provided.
Think we missed something? Let us know in the comments section below.