Zaif, a Japan-based crypto exchange established in 2014, was hacked on the 14th of September, leading to a loss of roughly 6.73 billion Japanese Yen, or approximately $60 million in USD value. The stolen cryptocurrency was reported to be comprised of client funds, as well as Zaif-owned funds, the former being 4.5 billion Yen and the latter being 2.2 billion Yen.
Zaif Loses Bitcoin, Bitcoin Cash And Monacoin In Hack
According to Live Coin Watch, the Zaif exchange is currently the 86th largest Exchange in terms of trade volume. Osaka-based Tech Bureau Corp., which is the corporation behind Zaif, has publicly announced the theft on the 18th of September, a day after being investigated and reported to concerned authorities.
It has been stated that the apparent theft took place from 5 PM. to 7 PM on September 14th. Zaif has vowed to return users with their lost cryptocurrency holdings, with Japan-based Fisco Digital Asset Group backing the startup with financial aid, making the firm’s supporter a newly-instated majority shareholder. Fisco is said to be providing $44.5 million to Tech Bureau and its clients, as the firm behind Zaif has stated that it lost over $20 million in cryptocurrency in the hack itself.
The Japanese Financial Services Agency (FSA) and the Osaka prefectural police have been informed about the theft by Tech Bureau, and Tech Bureau has stated that its staff will make sure the hackers are uncovered and brought to justice.
Zaif has reported that three types of cryptocurrencies were stolen, namely Bitcoin (BTC), Bitcoin Cash (BCH) and MonaCoin (MONA). The crypto funds that were lost in the hack were reportedly stolen from Zaif’s hot wallets, which are a specific form of wallets that are perpetually connected to the internet to facilitate quick transactions.
In February 2018, the now-infamous crypto exchange experienced a system glitch which allowed users to trade Bitcoin for zero Yen, which wreaked havoc on the exchange’s internal ecosystem.
As such, several Zaif users have complained about the poor back-end performance and lack of proper customer support. All deposits and withdrawals of cryptocurrencies from the exchange have been suspended while the firm recovers. But even so, the return of the exchange in its full glory is still up for debate. In a statement, the firm wrote:
“At the present moment, I sincerely apologize that I can not specifically mention the date of resumption. Regarding your valued assets, we are planning to be secured by procurement of property, so please understand kindly.“
While this hack may not be as big as the $500 million loss suffered by Coincheck, one of Japan’s leading exchanges, this most recent event isn’t the best sign for this nascent industry, to be frank, even if crypto has a bright future.