In a second major heist of a Japanese cryptocurrency exchange happened this year, a huge sum of 6.7 billion yen in cryptocurrencies was stolen from the Zaif’s wallet. Out of the total robbed amount, 4.5 billion yen belonged to a customer.

Tech Bureau, an operator of cryptocurrency exchange Zaif, admitted that the theft occurred between 1700 and 1900 local time on September 14. And the attackers were able to breach the hot wallets of the exchange containing Bitcoin, Bitcoin cash and Monacoin.

On this, Nikkei stated that the operator was not able to recognize the hack until September 17, which was determined by the suspended deposits and withdrawal services. This incident was reported to the Financial Services Agency and Japan’s financial regulators by the Tech Bureau. However, Investigation is currently under process.

Zaif is uncertain about the exact amount of Monacoin(MONA) and Bitcoin Cash (BCH) heist. However, it is estimated that about 5,966 bitcoins were stolen as a result of the breach.

The primary reason behind Zaif being unable to determine the hack quantity was the server that couldn’t restart due to safety concerns to prevent secondary damage. Zaif stated, “As soon as the quantity of the lost virtual currency is determined, we will report it promptly.”

To compensate the customers for their losses, Tech Bureau took an instant decision of selling a majority of shares to the publicly listed financial services corporation known as Fisco Digital Asset Group Japan. The exchange has signed the agreement initially that will help to recover the 5 billion yen in exchange to compensate the majority of owners. This fund will directly replace the 4.5 billion yen ($40 million) stolen from customer accounts.

Zaif was one among six licensed cryptocurrency exchanges to whom FSA gave instructions of business improvement in June, three months before the hack.

Moreover, financial regulators have already imposed many restrictions following a $530 million theft of cryptocurrency from Coincheck, an unlicensed Tokyo-based exchange, in January.

The crypto thefts haven’t suppressed the burgeoning appetite for cryptocurrency trading in Japan. And FSA is expecting more than 160 applications from different companies so that they can launch cryptocurrency exchanges in a regulated market.

Alex Canfield
Alex Canfield is a 1999 graduate of De La Salle University in Manila, Philippines. After over a decade working office jobs, he decided to start his own news publication. He mainly focuses on technology articles and editorials at News Parliament. He loves to listen to music and play with gadgets in his spare time. Email:alex@newsparliament.com

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