Over $6.2 Million Worth of Crypto Assets Hacked in Japan Last Year

Mar 23, 2018 at 18:04

According to data released by Japan’s National Police Agency (NPA), over $6.2 million worth of cryptocurrency was lost due to fraud and theft in the country last year.

Based on a report from Nikkei, the figure did not reflect the hack of over $500 million worth of NEM from Japanese crypto exchange Coincheck in late January.

Nikkei cited that 16 virtual currency exchanges and 3 companies with crypto wallets were victims of all of the 2017 recorded crypto hacks. Out of the 149 cases of unauthorized access to crypto accounts, about 80 percent of cases had wallets that do not use two-factor authentication and only utilized ID and password.

However, the report did not identify the names of the affected exchanges and crypto wallets.

The NPA data also mentioned that currencies that make up the largest percentage of the hack were Bitcoin (BTC) with 85 units; Ripple with 55 units; and 13 other altcoins.

The police agency also revealed that the number of hacks increased per month as BTC’s price increased, 9 unauthorized attempts in April, 19 in May, and 41 in June. There were also 425 recorded cases of illegal online transfers of fiat currencies.

It can be recalled that after the Coincheck hack last January, Japan’s Financial Services Agency conducted on-site inspections of 15 unregistered Japanese crypto exchanges. Of the 15 exchanges, seven were then given business improvement notices while two had their operations temporarily suspended due to lack of proper and required internal control systems.