Japanese Crypto Exchange Zaif Loses $60M

Japanese crypto exchange Zaif loses $60M to hackers as a result of the security breach that took place on September 14th. Will the company be able to reimburse clients' losses?

21 September, AtoZ MarketsOne of the Japanese cryptocurrency exchanges, Zaif, has reportedly lost $60 million worth of cryptocurrencies to robbers. According to the parent company of the crypto exchange, Tech Bureau, the exchange has experienced a hack attack.

Japanese Crypto Exchange Zaif Loses $60M

Online reports claim that Zaif has been hacked on September 14th during a two-hour time frame. Some three days later, the cryptocurrency exchange has uncovered server problems and decided to look into them more closely. Following the internal investigation, on September 18th, the digital currency exchange confirmed that has suffered a hack attack. The exchange has promptly notified authorities about the security breach.

It is understood that numerous cryptocurrencies, such as Bitcoin, Monacoin, and Bitcoin Cash were stolen from the exchange’s online wallet. Reportedly, hackers were able to gain access to the online wallet of Zaif via the Internet.

Out of the $59.67 million stolen, around $40 million belonged to the clients of the exchange and other $20 million were in possession of the parent company of the cryptocurrency exchange. Online reports state that Tech Bureau is now working on acquiring an investment to repay its affected customers’ losses. However, it is known that the deal is still pending.

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Japanese Exchanges Suffer Hack Attacks

The hack attack could possibly influence Japan’s Financial Services Agency’s (FSA) views on how cryptocurrency market should operate in the country. As of the moment, the Japanese watchdog is working on a review that could determine the new regulation for the digital asset sector.

In fact, Japan has experienced a number of Bitcoin exchange thefts, including the most famous one – Mt.Gox. The latter lost most of Bitcoins to theft back in 2014 and had to file for bankruptcy. Presently, customers are still waiting to get refunds for their losses.

Another massive hack attack that has taken away around $530 million worth of cryptocurrency from the exchange is the Coincheck hack attack that took place in January. This event has primarily attracted the scrutiny from the Japanese FSA. The regulator stated that it found that many exchanges were lacking proper security measures and protection against money laundering.

At the moment, Japanese cryptocurrency exchanges are required to register with the FSA before offering any services in the country.

FSA Cryptocurrency Regulation Views

Earlier this August, AtoZ Markets reported that Japan’s financial regulator’s commissioner has stated that the organization wants to contribute to the growth of cryptocurrency market in regards to the regulatory matter.

Toshihide Endo is a current commissioner of Japan’s FSA. He has been quoted by a number of online media reports as saying that he sees the FSA’s goal for developing the cryptocurrency sector as finding a “balance” between consumer protection and technological innovation.

He has added:

 “We have no intention to curb [the crypto industry] excessively. We would like to see it grow under appropriate regulation.”

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