Japanese cryptocurrency company Tech Bureau Corp reported that about $60 million in digital currency was stolen from its exchanger. These events once again highlight the vulnerability of the industry, even despite all attempts by the authorities to secure it.
Tech Bureau, which this year has already received two official recommendations from the regulator regarding the security of storing client funds, stated that the Zaif exchanger was hacked within two hours on September 14. According to company representatives, exchanger employees noticed a server problem on September 17, confirmed the hack the next day, and immediately reported it to the authorities.
After the hack, Tech Bureau representatives reported that they had received an investment from Fisco Ltd. in the amount of 5 billion yen ($44.5 million) in exchange for majority ownership. The funds received from this transaction will be used to compensate for the losses of clients. According to Reuters, the Financial Services Agency (FSA) of Japan will conduct an emergency audit of the company and the principles of its work with client assets.
During the Tech Bureau hack, thieves managed to steal 6.7 billion yen ($59.67 million) worth of Bitcoin, Monacoin and Bitcoin Cash from the exchanger's hot wallets. Hot storage wallets operate online, so many experts consider them to be more vulnerable than cold storage wallets, which are not connected to the Internet.
Japanese crypto exchanges came under heavy scrutiny after exchange Coincheck more than $530 million in cryptocurrency was stolen. Shortly after the theft, Coincheck was acquired by Japanese brokerage firm Monex Group in January of this year.
Following the Coincheck hack, the FSA conducted a nationwide audit of cryptocurrency exchanges. The FSA said the review found poor management, a lack of adequate safeguards to keep customers safe and a lack of basic anti-money laundering measures at many exchanges.
Japan became the first country to regulate crypto exchanges. Currently, exchanges are required to register with the FSA, comply with reporting requirements and other obligations. According to agency representatives, more than 160 institutions have expressed interest in registering a cryptocurrency exchange, but the FSA has not yet issued a single permit since December last year...
FSA Commissioner Tohishide Endo said in August that the agency was trying to find a middle ground between customer protection and technological innovation:
“We have no intention of intersecting cryptocurrency activities. We would like to see this industry develop according to clear rules.”
According to reuters.com
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