Hacked Japanese exchange issued business improvement order

September 26, 2018
Chris Wheal

Tech Bureau Corp, the Japanese cryptocurrency firm whose Zaif exchange was hacked earlier this month, losing $62m in digital tokens, has been rapped by authorities for failing to provide adequate details on the theft.

Tech Bureau-owned Zaif exchange issued FSA order

Japan’s Financial Services Agency issued a business improvement order to Tech Bureau on Tuesday, mandating the company to provide details on the hack, how it intends to compensate its clients, and to explain its delay in reporting the theft.

No explanation

The only details provided so far are that the Osaka-based Zaif exchange, wholly-owned by Tech Bureau, was hacked on 14 September over a two-hour period and around Y7bn, or $62m, stolen – mostly in bitcoin and bitcoin cash. The exchange detected server problems on the 17th and confirmed the theft the next day.

“We have not received enough explanation on what exactly happened. What they told us is an employee’s PC was hacked,” said an official at the financial regulator.

Previous orders

Tech Bureau had previously been issued two business improvement orders – one in March demanding the Zaif exchange establish “an effective risk management system”.

While it is believed the hack on the Zaif exchange targeted an employee’s PC, the company has not confirmed this – although such targeting by hackers is becoming increasingly common.

The FSA official added: “It is extremely regrettable that such an incident happened when the company was given two business improvement orders.”

Post written by Chris Wheal
Chris Wheal is editor of OpenLedger's news and features service. An award-wining business journalists himself, he runs a team of freelance journalists from across the UK and north America.

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