Japanese Crypto Exchange Zaif Accidentally Drops Bitcoin’s Price To Zero

News | February 22, 2018 By:

Japanese cryptocurrency exchange Zaif has revealed that it experienced a system glitch last Friday that allowed customers to temporarily ‘buy’ trillions of dollars worth of bitcoin for free.

The company said the glitch happened with its price calculation system and allowed seven customers to obtain bitcoin for free. Six of the transactions have been voided, and the exchange has been trying to resolve the problem with the seventh customer, who tried to cash out 2,200 trillion yen (about $20 trillion) in bitcoin.

Zaif, which is powered Tech Bureau Corp, and registered by the Japanese government, said the problem has been corrected and the system is completed restored. Therefore, it claims, there will be no impact on the platform’s customers.

The exchange is now facing an investigation into the safety of the system and other business practices from Japanese authorities. It has already faced checks after another Japanese crypto exchange Coincheck was hacked last month, with more than 523 million XEM stolen.

Zaif’s system glitch could draw further attention to security and systems at cryptocurrency exchanges, which were already under scrutiny in the wake of the Coincheck hack. The Coincheck heist also prompted licensed Japanese crypto exchanges to create a self-regulating body to safeguard investors.