Licensed Japanese exchange Zaif hacked for 6,000 bitcoins
Another Japan-based cryptocurrency exchange has been hacked, losing $60 million worth of cryptocurrency, including 5,966 bitcoins. The licensed exchange, called Zaif, is operated by the Tech Bureau. It said on Thursday that the exchange first noticed an unusual outflow of funds last week, after which the company suspended asset deposit and withdrawal services.
Tech Bureau explained that after further investigation, it discovered that hackers with unauthorized access to the exchange’s hot wallets had stolen roughly $60 million in Bitcoin and others. That being said, the exact amount stolen remains unknown. The exchange added that since its own asset reserve is currently around $20 million, it has reached an agreement with a Japan-listed firm called Fisco to receive a $44.5 million investment in exchange for a major share of ownership.
Translation of news from Japanese language
Since around September 14, Heisei 30, some services such as deposit / withdrawal of virtual currency are not in operation at our service, and we are causing serious inconvenience to our customers.
As a result of our survey, it turned out that some of the deposits and withdrawal hot wallets were hacked by unauthorized access from the outside, and part of the virtual currency managed by us was illegally discharged to the outside .
This situation will result in betraying the trust of all our customers who trust our company and keeping valuable assets, and we apologize for lying down.
Naturally, it is a top priority that we do not suffer damage to customer assets. We will promptly notify the Financial Services Agency and the investigation authority after the abovementioned damage and also investigate the cause with the efforts of a third party including Kaichi Corporation also within the company, We strive to secure.
Below, we will explain the explanation about this issue, our company’s response, the situation of securing financial resources equivalent to customer assets, and future management policy of our management team.
2. Facts currently known about hacking damage
① History of hacking damage
In order to respond to customer’s deposit / withdrawal, we are keeping it in hot wallet (part cold wallet) of kept virtual currency from customer. Unauthorized access from the outside was conducted from around 17 o’clock on July 14, 1900 to around 19 o’clock on the server managing the hot wallet for the deposit and withdrawal, and the virtual wallet managed by the hot wallet Currency (BTC, MONA, BCH) was illegally remitted. Regarding specific concrete methods of unauthorized access, etc., this case is a criminal case, it has already been requested to investigate by filing a damage report to the investigation authorities, and also in order to prevent the same kind of crime in the future I would like you to withhold me. We understand that detailed explanation is as much as possible, but I am pleased if you acknowledge it in any way.
② loss caused by our hacking damage
The type and quantity of virtual currency that we lost due to hacking damage are as follows.
· BTC 5966
· MONA currently under investigation
· BCH currently under investigation
The total losses due to the above damage is estimated to be about 6.7 billion yen (including MONA and BCH) in Japanese yen. The reason for not being able to determine the damage quantity at the moment is that the server is not restarted until secure confirmation of safety is ensured in order to prevent secondary damage. As soon as the quantity of the lost virtual currency is determined, we will report it promptly.
③ Impact on customers’ assets due to hacking damage
Among the virtual currencies equivalent to about 6.7 billion yen lost, our unique assets are equivalent to approximately 2.2 billion yen, and the virtual currency equivalent to customer assets is about 4.5 billion yen.
After discovering this case, we are striving to secure financial resources not to damage the customer’s assets, and we will explain the situation in the following “3. Response of our company”.
3. Our company’s response
① Cause analysis and system restart
Since our company detected server malfunction on September 17, 1920 and hacked damage was confirmed on the following 18th, we reported to the Treasury and analyzed the cause and made damage report to the investigation authorities etc. It was.
Currently, we are checking and strengthening security, rebuilding the server, etc., in order to restart the system of depositing / withdrawing virtual currency. We are committed to restoration as soon as possible, so please wait for a while. Moreover, I sincerely apologize for any inconveniences that may arise.
② Request for support on customer’s assets, etc. and conclude contract
We have immediately requested the following support after the discovery of this case and have already concluded a contract concerning support. Contents of support include (1) provision of property equivalent to customer’s assets held by lost customers, (2) provision of technologies / personnel for improving security, (3) capital alliance to improve management foundation, management team Dispatch, etc. are included in the content.
Today (September 20, 1808), we provide financial assistance providing 5 billion yen to our company through a subsidiary of Fisco Digital Asset Group Co., Ltd., a group company of Fiscal Co, a JASDAQ listed company , We have concluded a basic agreement to consider the capital alliance to acquire majority of our stocks, the dispatch of more than half of the directors and corporate auditors.
In addition, we have concluded a basic agreement with Kaica Corporation (listed on JASDAQ, Securities Code 2315) today, with the contents of providing technology for improving security to our company.
For installation of the above support, press release will be issued from Fisco Co., Ltd. and Kaica Co., Ltd. which are group companies on the supporter side, please refer to the following.
· Release by Fisco Corporation
· Release by Kaica Corporation
4. Restarting deposits and withdrawals, future policy on customer’s assets
① In and out of virtual currency
We will work to reconstruct the system while receiving support from engineers of Ka- ka Co., Ltd. for the resumption of deposit / withdrawal as soon as possible.
The restart of deposit / withdrawal of virtual currency is based on the premise that the safety of the system is confirmed. At the present moment, I sincerely apologize that I can not specifically mention the date of resumption.
Regarding your valued assets, as we will discuss below, we are planned to be secured by procurement of property, so please understand kindly.
② Customer assets (procurement of Japanese yen and provision of deposit virtual currency)
We have concluded a basic agreement with Fisco Digital Asset Group Co., Ltd. that discusses offering 5 billion yen to our company. We are preparing and negotiating with the company on the premise that the offer will be executed at the end of this month.
In addition, we plan to procure the lost virtual currency using the funds provided and prepare it so that the damage on the customer’s assets will not be affected.
In the future, if the contents of the basic agreement are executed, etc., we will report as soon as necessary.
5. Viewpoint of our current management team regarding this matter
All of our management team take seriously the fact that due to the hacking damage this time, valuable deposit assets from customers have disappeared. As a result, even if the virtual currency equivalent to customer’s assets can be prepared by the above-mentioned funding etc., the concerns and inconveniences given to customers are tremendous.
As a result, our current management team responded with full power to this matter, we fully committed to preserving the customer’s assets and fulfilled our obligation to hand over to the management team of the Fiscal Group, which acquires a majority of control In case, we will retire our officers as management responsibility.
Regarding the matter on this occasion, the management team apologize to all of our customers for fear.
6. COMSA business policy by our affiliated company
Tech Bureau Holdings Co., Ltd., our affiliated company, operates the COMSA business succeeded by our company split from our company. Regarding the future policy of the project, it is currently under consideration at the company, and we will report it as soon as it is discovered.
7. For inquiries regarding this matter
For inquiries regarding this matter, please contact below.
Tech Bureau Inc. Corporate Communications
E-mail address firstname.lastname@example.org
Phone number 03-6705-8653 (private telephone)
Reception hours Weekdays from 10 o’clock to half past seven
Kraken Daily Market Report for 19.09.2018
KRAKEN DIGITAL ASSET EXCHANGE
$123M traded across all markets today
Blockchain News 20.09.2018
Bitcoin and other similar curr...
According to a statement at th...
South Korea's Finance Minister...
SEC seeks comments from public...
New research paper sees Bitcoi...
Binance & LCX create crypt...
👍 THUMBS UP & SUBSCRIBE + ...
Bitcoin and Wall Street breaki...
Get $10 worth of bitcoin for f...
news links: XRP Gets Listed A...
Japan is rumored to be looking...
Bitcoin price is experiencing ...