Yesterday, September 19th, one of the largest Japanese crypto exchanges Zaif was hacked, reports PRTimes in Japan. The hack started already on September 14th, when the exchange noticed an unusual outflow of funds on the platform around 17:00 PM, Japan time, after which the company halted the deposit and withdraw functions.
Zaif is being operated by Tech Bureau and they explained that had investigated that the hackers had stolen around $60 million in BTC, BCH and MONA with unauthorized access to the exchange’s cold wallets. The exact amount of BCH still remain unknown.
The good thing is that Zaif had its own asset reserve of around $20 million, and they have made an agreement with a Japan company called Fisco to receive a $44.5 million investment in exchange for a large share of ownership. It looks like the users’ funds are going to be returned and are safe.
Tech Bureau said that they have already filed the hack to local authorities for further investigation.
Japans financial watchdog – Financial Services Agency (FSA), has launched a wide range of inspections over native crypto exchanges about their security measures.
And interestingly enough, Tech Bureau had already been warned by the FSA in March, on improving its security and anti-money laundering measures.
Japan had experienced another large hack this year in January. A company called Coincheck reported that an impressive amount of $520 million in NEM tokens had been stolen.
These kind of hacks happen pretty often in the crypto ecosystem, and by now, no-one is protected unless the exchanges are properly regulated and secured by governing instances. It would be highly recommended to stick with the most popular crypto exchanges, and not to trade in the low volume ones. It might seem tempting as the lower class exchanges are offering more tokens and coins with small volume, with the option on arbitraging some assets. But if you highly value your investments and assets then we recommend to avoid these low class exchanges.