Hacked Crypto Exchange Zaif Receives Third Improvement Order From Japan’s Regulator

News, Regulation | September 26, 2018 By:

Japan’s Financial Services Agency (FSA) has issued a third business improvement order to Tech Bureau, operater of hacked crypto exchange Zaif.

Zaif, one of 16 exchanges licensed by the FSA, reported last week that it lost 6.7 billion yen ($59.7 million) worth of crypto assets belonging to both customers and to the company itself. The exhange was originally hacked on September 14th, but the security breach was not detected until September 17. Zaif has already been issued with two business improvement orders by the FSA. The first order was issued in March and the second in June.

In its newly-issued business improvement order, the regulator is pressing for more details about how the hack actually took place and its response to customers. The FSA has also ordered the exchange to implement concrete and effective improvement plans based on the hacking incident, as well as the contents of two prior business improvement orders. It has given Zaif until September 27 to submit written reports.

A senior FSA official, who declined to be identified, warned that further action could be taken against the exchange depending on the outcome of the investigation.

“We have not received enough explanation on what exactly happened,” the FSA official said. “What they told us is an employee’s PC was hacked. It is extremely regrettable that such an incident happened when (Tech Bureau) was given two business improvement orders.”