Small Japanese crypto exchange suffers cyber-attack

Some $59 million worth of crypto have been stolen in the incident

Small Japanese crypto exchange suffers cyber-attack

Japanese cryptocurrency exchange has been hacked, with $59 million worth of cryptocurrency having reportedly been stolen during the cyber-attack, industry website Cointelegraph has reported.

According to a Wednesday report by Cointelegraph Japan, the crypto exchange called Zaif experienced a security breach on September 14. The hackers reportedly stole 4.5 billion yen from users hot wallets and 2.2 billion from the exchange’s own assets – a total loss of 67 billion yen, or around $59.7 million.

Tech Bureau Inc, the company that operated Zaif, today issued a statement, saying that the exchange had suspended deposits and withdrawals after detecting a server error on Monday, September 17. On Tuesday the exchange realised that the error had been a hack and informed Japan’s financial watchdog, the Financial Services Agency (FSA). The hackers stole 5,966 Bitcoins (BTC), as well as some Bitcoin Cash (BCH) and MonaCoin (MONA).

In order to cover the losses of its users, Tech Bureau has struck a deal with Fisco Digital Asset Group, which will provide 5 billion yen. In exchange, Fisco will become a majority shareholder in Tech Bureau.

As noted by Cointelegraph, this is not the first incident related to Zaif. Earlier this year, the exchange reported having a system glitch that temporarily allowed users to acquire Bitcoins for free.

Zaif is not among the major cryptocurrency exchanges. According to recent data from digital currency tracker Coinmarketcap, the platform ranks as the 85-th largest crypto exchange, with a 24-hour trading volume of less than $5 million. In comparison, the world’s largest exchange by trading volume, Binance, has processed crypto trades worth just over $950 million in the past 24 hours.

Zaif’s most popular trading offering is XEM/JPY, which accounts for more than 70% of its current 24-hour volume. The next most-traded pair on the platform is MONA/JPY, with around 12.5%.

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