Cryptocurrency Exchange Zaif Losses $60 Million Worth of Crypto Assets to Hackers

0
162
Photo Credit: Blokt

In what has remained a rude shock to the cryptocurrency community, another Japan-based cryptocurrency exchange has reportedly been hacked with over 6.7 billion yen (about $60 million worth of cryptocurrency) including 5,966 bitcoins lost to hackers.

Zaif, a licensed cryptocurrency exchange owned and operated by Tech Bureau, announced the hack on Thursday. According to big shots in the company, the Cryptocurrency exchange first noticed unusual outflow of fund at about 17:00 Japan time. Having noticed it, the exchange immediately suspended asset deposit and withdrawal services.

Providing more insight to the unfortunate event, Tech Bureau stated that after careful investigation, the cryptocurrency exchange discovered that the hackers used unauthorized access to the exchange hot wallet and made away with crypto assets reportedly worth $60 million in bitcoin, bitcoin cash, and MonaCoin. As at the time of writing the report, the exchange said it is not exactly sure of the amount of bitcoin cash stolen by the hackers.

In an attempt to save the company from eventual collapse, the cryptocurrency exchange is believed to have struck a deal with Japan listed firm, Fisco, who will reportedly invest $44.5 million in the exchange for a major share in the company. The exchange is reported to have a reserve asset that is currently worth.2 billion yen (or $20 million).

According to the company, given the nature of the unauthorized fund access, it has been forced to file a criminal case with local authorities who will conduct further investigation.

This incident isn’t the first in Japan this year, in January, Coincheck announced that hackers invaded its exchange, stealing with them $520 million worth of NEM tokens.

Following the hack, the financial watch dog of Japan, Financial Services Agency, launched a series of measures that targeted cryptocurrency exchange and the security measures they put in place to prevent hackers from gaining access to their platforms.

More so, it is important to note that the FSA had initially issued a business improvement order to Tech Bureau in March regarding enhancing its security and anti-money laundering measures before this hack.