Japanese Crypto Exchange To Provide $44.5-M Compensation To Victims Of $60-M Hack Case

Sep 20, 2018 at 21:54

Japan takes another blow after a $60-million hacking incident from cryptocurrency exchange Zaif but the company has closed a deal to provide financial assistance to victims of the theft case.

In a statement, Osaka-based Tech Bureau Corp., owner of Zaif, said 6.7 billion yen or $59.6 million worth of Bitcoin (BTC), Monacoin (MONA), and Bitcoin Cash (BCH) were stolen last week.

Of the total, 2.2 billion yen or $19.6 million was owned by the exchange while 4.5 billion or $40 million belonged to its customers.

Since discovering the theft, Tech Bureau has suspended deposit/withdrawal of multiple virtual currencies and settlement services.

“Currently, we are checking and strengthening security, rebuilding the server, etc., in order to restart the system of depositing / withdrawing virtual currency. We are committed to restoration as soon as possible, so please wait for a while,” Tech Bureau said.

It is also working on securing financial resources not to damage the customer’s assets.

Tech Bureau said it will compensate victims of the theft case in the amount of 5 billion yen or $44.5 million. It signed an agreement with Fisco Co. Ltd., a subsidiary of Fisco Digital Asset Group Co., Ltd.

“We have concluded a basic agreement to consider the capital alliance to acquire majority of our stocks, the dispatch of more than half of the directors and corporate auditors,” the exchange operator said.

The hacking incident was reported to authorities, to which the Financial Services Agency directed the exchange to submit a report on the incident, Bloomberg reported.

Japan’s financial regulator is also planning an on-site inspection of the company once the report is submitted.

As part of its remedial process, Tech Bureau also closed a deal with Kaica Corporation to provide technology for improve security.

This is not the first time a hack job happened in Japanese digital exchanges. In 2014 was the infamous Mt. Gox heist. And in January this year, there was the $500-million theft from Coincheck Inc.