Regulators of Japan Seeking Answers in Wake of Zaif’s ¥6.7 Billion Crypto Hack

A business improvement order has been issued for the third-time by the Financial Services Agency (FSA) of Japan to Tech Bureau, owner of Zaif - the hacked crypto exchange. Cointelegraph Japan reported the news on September 25, 2018.

Crypto assets worth $59.7 Million (¥6.7 Billion) belonging to both exchange as well as the users has been stolen by the hackers due to the security breach, on September 14, in the Zaif exchange. Tech Bureau had already been ordered by the FSA firstly in the month of March, 2018, and then again in June, 2018, for making business improvements.

Tech Bureau disclosed the details of the hack involving theft of $59.7 Million (¥6.7 Billion) in bitcoin, monacoin and bitcoin cash from exchange's 'hot wallets'. Initially, the hack occurred on September 14 between 17:00 to 19:00 local time. Financial Services Agency, Japan's financial regulator, was reported about the breach by Tech Bureau, leading to an investigation on the breach that finally led to this action.

As reported earlier, Tech Bureau revealed their plans of selling majority of their shares to a financial firm, which is publicly-listed, in an agreement which will see operator gaining cash injection of ¥5 Billion. As posted on September 25, 2018, by ccn.com, these funds will help directly in reimbursing an estimated ¥4.5 Billion that was stolen from the customer accounts.

Perhaps most notably, on the basis of inquiry outcome, the FSA can take "further action" against exchange and its operator. Last year, Japan became first country, which regulated the cryptocurrency exchanges, as they encourage the technological innovation while ensuring the consumer protection. The exchanges are registered with Financial Services Agency, and require to be reported along with other responsibilities.

Earlier this month, FSA said that over 160 entities have shown interest to enter in cryptocurrency exchange business, however the FSA hasn't issued any approval after last December. National Police of Japan claim that the crypto theft, in first 6 months of 2018, has tripled. The senior Financial Services Agency official said that the agency will not stop screening process of the new entrants due to the incident of Tech Bureau.

» SPAMfighter News - 10/1/2018