Zaif’s hack resulted in almost $60 million loss

Hackers have stolen cryptocurrencies valued at $59 million from Osaka-based Tech Bureau Inc, operator of cryptocurrency exchange Zaif.

According to local news, as a result of a security break on September 14, hackers succeeded to steal 4.5 billion yen from users’ hot wallets, as well as 2.2 billion yen from the company’s assets. So far losses were totaling in 6.7 billion yen or about $59.7 million.

Tech Bureau Inc stated in a press release that the exchange discovered a server error on September 17, then Zaif temporarily stopped deposits and withdrawals. On September 18, the exchange recognized that the error was a hack, and informed the Japanese financial regulator (the Financial Services Agency (FSA)) about the incident. The hackers seized 5,966 bitcoins (BTC) along with some Bitcoin Cash (BCH) and MonaCoin (MONA).

As stated by Tech Bureau Inc, the firm Fisco Digital Asset Group will support Zaif in covering the losses or customers’ assets by contributing 5 billion yen ($44.5 million). Tech Bureau made an arrangement with Fisco to replace more than half of its managers and corporate auditors in addition to Fisco becoming a majority stakeholder in the company.

Zaif exchange is the 101st biggest cryptocurrency exchange in volume, according to CoinMarketCap.
Earlier this year, Zaif exposed a “system glitch” that enabled users to temporarily acquire trillions of dollars worth of Bitcoin (BTC) for free in February. 16 customers were unexpectedly able to “trade” yen for cryptocurrency at a price of 0 yen per coin.

Coinjive is a personal blog ran by Ana that aims to bring the most truthful, simple to comprehend, backed by facts and well-researched information. Although, please agree to accept a dash of subjectivity. Coinjive is run by a human after all. For immediate updates follow us on Twitter or Telegram. Reach out with comments, questions, and suggestion at the Contact Us section.

Author:
Ana (@coinjive) has been involved in the crypto industry for more than a year now. She was working for three ICOs (as a PR / and CMO). And prior to dive into the blockchain reality, she served as a Communication manager for big tech and less tech companies (including SAP, Evernote, Avon and, etc.). Currently, she works as a contributor at Future Times and as ICO analyst for a private Israel-based crypto venture capital firm. P.S. please agree to accept a dash of subjectivity. Coinjive is run by a human after all.