![]() ![]() Fisco’s total market value at time of writing was approximately ¥9.8 billion. On September 20, Fisco announced that the cryptocurrency exchange operated by one of its subsidiaries has no connection to the Zaif system, and said it was looking to sign a formal agreement on a financial assistance package for Zaif. As Tech Bureau announced the hack at Zaif, the publicly listed Fisco Digital Assets Group announced that one of its subsidiaries would acquire a majority of Tech Bureau’s stock, providing a cash injection of ¥5 billion Tech Bureau said it would use the funds to compensate customers for their losses. ![]() Since Coincheck operates without formal registration, having been in business since before the amended Payment Services Act came into force, the recent hack was the first major breach at a registered cryptocurrency exchange. ![]() Zaif itself had received two business improvement orders from the Kinki local finance bureau. In January this year, a hack at Coincheck resulted in the theft of around ¥58 billion of NEM tokens, prompting the Financial Services Bureau to take steps to bolster its monitoring systems. This was not the first incident to affect Japanese cryptocurrency exchanges in recent months. A report was made to the regional finance bureau and news of the security breach was announced just before three in the morning of September 20. The hack was not discovered until three days later, on September 17. Apparently, the cryptocurrency exchange was not using cold wallets to store the NEM Coins but instead, simple hot wallets.In the evening of September 14, 2018, the Osaka-based Tech Bureau’s Zaif cryptocurrency exchange was hacked, resulting in the theft of approximately ¥7 billion of cryptocurrency (in the form of Bitcoin, Bitcoin Cash, and Monacoin). Second, the cryptocurrency market today is more diversified and bigger than ever, meaning that $500 million dollars today are not the same as $500 million dollars 5 years ago.Ĭlearly, it is important to attack the reasons why this hack occurred. First, MtGox was managing more than 70% of the Bitcoin transfers all over the world. But there are several reasons why this hack has not been as important as the MtGox one. This may be one of the biggest hacks in the history of the cryptocurrency space. “We realize that this illicit transfer of funds from our platform and the resulting suspension in services has caused immense distress to our customers, other exchanges, and people throughout the cryptocurrency industry, and we would like to offer our deepest and humblest apologies to all of those involved,” the company wrote in the statement. Besides that, the Coincheck has been deeply upset about the whole situation. When the funds were stolen, the company has given a press conference in which they explained the situation occurred. It is important to mention that most of the funds used for reparations will be derived from company funds. Furthermore, Coincheck does not know which will be the method for applying for reparations. At the moment, the cryptocurrency exchange did not decide when they will be issuing the payments. The users will be paid in JPY through Coincheck Wallet using the XEM/JPY rates on the cryptocurrency exchange Zaif. Approximately 260,000 users have been affected by the illicit transfer of funds. On January the 27th the company has released a statement in which they explain how they are going to refund investors who lost their NEM coins. Coincheck has announced that they are going to refund investors that lost their NEM during the attack. The company announced that they lost 523 million NEM coins (XEM) which were worth around $500 million dollars. Coincheck, one of the largest cryptocurrency exchanges in Japan, has been hacked on January the 26th. ![]()
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