Japanese Regulators Scrutinize Zaif Crypto Exchange Hack

Japanese regulator FSA looks into crypto exchange Zaif hack, requiring the latter to provide further details of the incident. Reportedly, FSA wants to know why there was a “delay in reporting the hack.”

26 September 2018 – The primary financial regulator of Japanese markets, the Financial Services Authority (FSA), is now reportedly looking into the situation that occurred earlier this month with the Zaif cryptocurrency exchange.

Zaif Hack Details

Zaif is operated by the Japanese firm Tech Bureau. The exchange has reported last week that it lost as much as $60 million worth of cryptocurrency. This included Bitcoin, Bitcoin Cash, and Monacoin. According to the parent company of the crypto exchange, the exchange has experienced a hack attack. 

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 it has suffered a hack attack. The exchange has promptly notified authorities about the security breach.

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.

FSA Demands Info from Zaif

The exchange published a blog post yesterday, where it outlined that officials are requiring more details regarding the hack attack. Reportedly, officials are also asking Zaif to provide details in regards to which steps the exchange can take to recompensate customers that suffered losses resulting from the hack.

It is also known that the FSA wants to know why there was a “delay in reporting the hack.” Some of the online news sources state that the FSA was planning to launch a probe into the Zaif hack. However, at the time, authorities did not issue any official business improvement order. 

According to some of the online reports, an official from the regulatory body was quoted as saying that the initial explanation indicated that the hack occurred due to an employee’s computer being infiltrated. An unnamed official reportedly stated:

“We have not received enough explanation on what exactly happened. What they told us is an employee’s PC was hacked.”

Furthermore, it is worth to note that the FSA could move to take “further action” against the exchange and its operator depending on the result of the investigation.

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