Japanese Exchange Glitch Gave Away Bitcoins

Feb 22, 2018 at 3:55

Japanese virtual currency exchange Zaif has suffered a glitch that allowed users to briefly trade bitcoin for free.

In a statement posted on its website, the company apologized for the problem that occurred from last February 16 where traders could buy and sell bitcoin at no cost during the 18-minute lapse.

“We sincerely apologize for the extraordinary worry and inconvenience caused by our customers regarding the abnormal value,” Zaif said.

It said seven customers were able to purchase the virtual currency at zero yen. According to a report by Asahi Shimbun, one buyer tried to sell bitcoin worth 2,200 trillion yen—or roughly $20 trillion.

Of the total, six cases have already been voided while one is still being resolved.

The company noted that the issue was immediately corrected and restored so there will be no impact on other customers.

“We will strive to prevent recurrence and we will continue to work on improving our services,” it said.

Zaif’s system glitch came after the recent $530-million hack on Coincheck Inc., which is considered one of the biggest cyber heists on record.

Japan’s Financial Services Agency (FSA) has ordered Coincheck to improve business operations in response to the illicit transfer of NEM coins (XEM) following the security breach.

Zaif, operated by Osaka-based Tech Bureau Corp., is one of the 16 exchanges with license from FSA.

Reuters reported that the registered exchanges are planning to form a self-regulatory body, which will also be submitted to FSA for approval.