Crypto Crime News & Updates

Hacked Exchange discontinues with Registrations

Tech #Bureau Inc., the owner of Zaif exchange, decided to suspend new account #registrations at their trading #platform temporarily.

The #decision came on September 28, 14 days after a hacking incident took place at Zaif and caused the crypto exchange more than $60 #million worth of damages. Tech #Bureau said in its press statement that it would resume new registrations as they decide on a concrete strategy to compensate their customers. It has reached out to Fisco, another Japanese investment #management company, for a $44 billion bailout agreement. The said financial s#upport expects to back customers’ financial assets but, according to a new development on October 1, the deal is still under #examination.

“After concluding the basic #agreement, we are advancing consultation and negotiations for #concluding a formal contract, there is no change in the policy to ensure thorough #compensation for customer assets, and we are continuing to consider the #details of specific #response…As soon as the content is confirmed, we will report it #promptly.” – Tech Bureau said.

As a clear #reimbursement policy takes shape, Zaif believes it would be ideal to keep the new #customers away from signing up on its #Bitcoin #exchange. The suspension, according to Tech Bureau, will not affect existing #customers, including those whose identity #verifications are still open.

FSA Launches Investigation

Japan’s #Financial Services #Agency (FSA) confirmed that it is investigating the security practices at Zaif exchange. The agency has already begun examining the user #protection systems installed in Tech Bureau offices.

FSA had served two consecutive #warnings to the company – in March and June – to improve their business operations. The agency had also reached out to other #cryptocurrency exchanges with the same advisory, reportedly in the wake of #Coincheck’s 509-million-dollar-hack that took place in January.

From January to June, #Japanese police has already identified more than 160 cryptocurrency thefts totaling circa $532 #million. More massive thefts received attention than smaller hacks. Nevertheless, the agencies never recovered #stolen funds.

#Hackers have remitted the stolen Zaif funds to exchanges offshore. The recipient #wallets reportedly have not gone through any KYC/AML guidelines, which could make it difficult for #Japanese police to recover the digital assets.

Featured image from Shutterstock.

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