Hacked Crypto Exchange Zaif Reveals Compensation Plan

Announcements, News | October 12, 2018 By:

Tech Bureau, operater of hacked crypto exchange Zaif, has announced that it will start reimbursing users who lost funds in the breach last month when technology group Fisco takes over the exchange.

Zaif, one of 16 exchanges licensed by Japan’s Financial Services Agency (FSA), was hacked on September 14, losing 6.7 billion yen ($59.7M USD) worth of cryptocurrencies, including nearly 6,000 bitcoin. At that time, Tech Bureau said that Fisco Digital Asset Group would cover lost customer funds by providing 5 billion yen ($44.5M USD) in exchange for a major share of ownership.

In a new notice posted on its website, Tech Bureau said that the proposed terms have been changed and it will now sell its entire stake to Fisco. In return, the responsibility of compensating victims of the breach will fall on the new owner. The deal is expected to be completed by the end of next month.

The deal indicates that Fisco would use its own bitcoin and Bitcoin Cash to refund users who had lost holdings of the two crypto assets. Users who lost Monacoin will be paid back part of their losses in Japanese yen at a rate of 144.548 yen for one coin.

“The compensation amount is 144.548 yen per 1 Monacoin,” said Tech Bureau. “This amount was adopted as an intermediate value of the price at Bitfryer Corporation and Bit Bank Corporation at 9:00 am on October 9, 2018. Please note that the exchange rate on this exchange at the same time is 128 yen, and we will compensate more than this amount.”

Tech Bureau added that deposit and withdrawal services are scheduled to resume after operations have been assumed by Fisco, with the specific resumption date to be announced at a later date.