Home / Cryptocurrency / Another Hack of Cryptocurrency Exchange hits Japan [UPDATED]

Another Hack of Cryptocurrency Exchange hits Japan [UPDATED]

To update (21 September 2018): The forensic company Blockchain has traced some of the bitcoins stolen by Zaif to the exchange of cryptocurrency Binance.

"I can confirm that the hack started on the 14th, when I saw the withdrawal of 5,966 Bitcoins," said Blocktrace founder Shaun MaGruder. Bitcoin Magazine.

Initially, the bitcoins were moved to this address. From there, hackers began to "stratify" the transactions, he said. In other words, splitting the funds into smaller and smaller amounts to hide the origin of the money. Some of the funds have arrived in Binance, where MaGruder states that the know-your-customer process is "not as severe" as other exchanges.

"Even if you need to upload your ID when checking your account, they're not making sure it's you," MaGruder said. Once there, hackers (or hackers) will probably exchange bitcoins with another currency, before moving funds into an exchange that has a fiat banking. Binance offers only crypto-crypto exchanges.

Another stroke of cryptocurrency has rocked Japan. This time, 6.8 billion yen ($ 60 million USD) of funds for companies and users have vanished from the Japanese cryptocurrency platform Zaif.

Tech Bureau Corp, the Osaka-based company that runs Zaif, estimates that the theft took place on September 14, 2018, between 5:00 pm and 5:00 pm. and seven o'clock in the afternoon local time. The exchange detected the violation on September 17, 2018 and communicated the event to the authorities the following day.

Of the stolen money, the hacker subtracted 4.5 billion yen (about 40 million dollars) from user accounts and 2.2 billion yen (just under 19.5 million dollars) from the company's activities . The three stolen virtual currencies include bitcoin, monacoin and bitcoin money. Of these, $ 37.8 million were bitcoin funds (5.96 BTC).

Tech Bureau Corp will be able to reveal the exact number of bitcoin money and stolen monacoine once the servers are restarted. All the cryptocurrency was taken by a server that ran its hot wallet. A hot portfolio refers to a portfolio that remains online for immediate transactions. In contrast, a cold wallet is a safer, longer-term storage that is kept offline.

The Japanese financial services agency (FSA) has already issued two business improvement orders (one in March 2018, the other in June 2018) to Tech Bureau Corp for its lax management structure. Now the watchdog is considering issuing a third warning, reports the Japan Times.

The exchange has suspended all services for now, but plans to return online once its network is secured. In addition, it intends to repay its customers and has already secured a loan of 5 billion yen ($ 44.5 million) from the Fisco Digital Asset Group. In addition, Tech Bureau Corp will sell its majority stake in Fisco, which owns its stock exchange. Second Japan TimesFisco will send directors and an auditor while Tech Bureau executives will step down for the incident.

The hack represents another stop in a country that has tried to regulate its cryptocurrency exchanges with the same level of oversight that the banks have. At the beginning of this year, Coincheck, based in Tokyo, saw the loss of $ 530 million of NEM tokens. This hack represents one of the biggest financial losses from the introduction of bitcoins. Coincheck was acquired by Monex.

From April 2017, Japan has applied for a license for all its crypto-exchanges. Both Coincheck and Tech Bureau Corp were founded in 2014, before the new laws came into force. Coincheck was not fully authorized at the time it was hacked, but Tech Bureau Corp is a registered exchange.

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