Japanese Crypto Exchange Zaif Loses $59.7M USD In Recent Hack

News | September 20, 2018 By:

Japanese crypto exchange Zaif has suspended deposits and withdrawals after announcing that it has been hacked, losing 6.7 billion yen ($59.7M USD) worth of cryptocurrencies.

Zaif, which is powered by Tech Bureau and one of 16 exchanges licensed by the Japanese government, announced on Thursday that the security breach occurred last week and that the hackers managed steal bitcoin, Bitcoin Cash, and MonaCoin from its hot wallet. About 2.2 billion yen ($19.6M USD) worth of the stolen currencies was its own, while 4.5 billion yen ($40.1M USD were customer funds.

Tech Bureau said in a statement that the Zaif exchange had been hacked into over a two-hour period on September 14. It detected a server error on September 17, after which the exchange suspended deposits and withdrawals. The exchnage confirmed the hack the following day and notified authorities.

Tech Bureau added that it has reached an agreement with a Japan-listed firm called Fisco to cover lost customer funds by providing 5 billion yen ($44.5M USD) in exchange for a major share of ownership. The company also signed an agreement with Kaica Corporation to improve security of the Zaif platform.

“Currently, we are checking and strengthening security, rebuilding the server, etc., in order to restart the system of depositing / withdrawing virtual currency,” Tech Bureau said.

Zaif was among the exchanges ordered by the Financial Services Agency (FSA) to improve operations in a crackdown that followed the Coincheck hack in January. The FSA has reportedly ordered Tech Bureau to submit a report on the security breach and is planning to perform an on-site inspection of the company.