A computer error on Japanese cryptocurrency exchange Zaif allowed some customers to receive digital tokens for $0. This has raised questions about the security of cryptocurrency exchanges.
A glitch occurred with the price calculation system of the Zaif exchange and allowed seven clients to receive digital currency for free. Six of those transactions were cancelled, and the exchange is trying to resolve the issue with a seventh customer who tried to cash out.
As reported by Japanese newspaper Asahi Shimbun, this seventh customer “bought” the equivalent of 2,200 trillion yen in bitcoin and tried to withdraw it from the exchange. The total value of all bitcoins, $187 billion, would not be enough to cover this client's order.
The newspaper also says that Japanese regulators are going to initiate an investigation into the exchange's technical support regarding the security of the system.
The exchange apologized to its clients. Zaif is among 16 official cryptocurrency exchanges in Japan that have already undergone inspections initiated by authorities following the hacker attack on Coincheck.
Registered cryptocurrency exchanges will form a self-regulatory body in April, according to Reuters. The body will determine safety and advertising rules and assign fines to members who do not comply with the rules.
You May Also Like
Coinbase attracts venture capital to expand business
Even under the pressure of a bearish paw, investors see prospects in the crypto business. Crypto exchange Coinbase has announced that it is now valued at more than $8 billion after it closed a new $300 million round of funding to "accelerate the adoption of cryptocurrencies and digital assets."
Coincheck reported growing losses in the third quarter of 2018
Japanese cryptocurrency exchange Coincheck continues to struggle for financial stability after becoming the victim of the largest hacker attack in the history of the crypto industry earlier this year. However, the company has so far reported losses totaling more than $5 million for Q3 2018.
