Tech Bureau’s Zaif exchange loses $60m to cryptocurrency hackers
Tech Bureau, a Japanese cryptocurrency firm, said on Thursday that around $60m in digital currencies had been stolen from its exchange, despite warnings this year about its safety.
Zaif, Tech Bureau’s crypto exchange, was hacked during a two-hour attack on 14 September, but the hack was not detected until three days later when it was investigating problems with its server.
Virtual currencies worth Y6.7bn, or nearly $60m, were stolen in the attack, mostly in bitcoin, bitcoin cash and monacoin, Tech Bureau said.
Fisco to the rescue
Following the attack, Fisco, a JASDAQ-listed crypto and blockchain technology firm said it was making a Y5bn ($44.6m) investment in Tech Bureau in exchange for majority ownership. The funds are to be used to replace the cryptocurrencies stolen from clients accounts.
Fisco said in a statement, however, that the investment – that it termed “financial assistance” – may change in value if, after further investigation, the amount taken in the attack is revealed to be different.
Business improvement orders
Hackers were able to loot customer accounts, despite the Zaif exchange being handed two business improvement orders by Japan’s top financial regulator earlier this year.
One such order issued by the Financial Services Agency (FSA) in March was the “establishment of an effective risk management system”.
Zaif responded at the time: “To make it possible for customers to use it with confidence, we will endeavor to further improve and strengthen the organisation and work together throughout the company so that we can establish an appropriate management system.”
The FSA’s increased scrutiny on crypto exchanges that resulted in a further five business improvement orders in March – on BitFlyer, BitBank, BitPoint, BTCbox and Quoine – followed the $530m hack of CoinCheck back in January.