One of Japan’s leading cryptocurrency exchanges Zaif and its parent company admitted through a press release that it fell victim to a hack of a staggering $60 million.
On September 14, there were some issues with the exchange’s deposit and withdrawal functions. It was now revealed that this had nothing to do with any maintenance issues – but was because the exchange believed that its hot wallets were being breached. The culprits are unnamed and unidentified.
The cryptocurrencies that were stolen include almost 6,000 bitcoin and an undisclosed amount of both Monacoin and Bitcoin Cash. The amount totaled about $59 million in USD or 6.7 billion yen. The exchange disclosed that the majority of the stolen money was from customer funds.
Zaif and its parent company have not taken the incident lightly and stated that they have reported the incident to the proper local authorities. In addition to reporting the hack to authorities, Zaif has asked the Fisco Digital Asset Group to provide a cash infusion of 5 billion yen, in an exchange for a majority stake in Zaif.
The 5 billion yen will be used to help to pay back customers and restore investor confidence. Zaif has also had a corporate shakeup, with some of the company’s directors and auditors leaving the company immediately, at the demands of the Fisco Digital Asset Group.
When put in context, the Zaif hack was not massive and did not affect the market in any noticeable way. This comes after larger hacks have occurred with exchanges that handle the more daily volume, such as Bithumb, Coincheck, and others.
Coincheck’s hack was more substantial, as the exchange lost over $500 million dollars, and led to the FSA, or Japan’s financial watchdog, inspecting cryptocurrency exchanges more closely in an attempt to improve regulation.