FSA Launches Investigation Into Zaif Hack

The Financial Services Agency (FSA) of Japan has initiated an investigation after $60 million worth of cryptocurrencies were supposedly stolen from local crypto exchange Zaif.

The FSA has already sent its staff to Tech Bureau — Zaif's parent company which is headquartered in Osaka — to authenticate whether the firm would be able to cover customer losses.

The Japan Virtual Currency Exchange Association (JVCEA) has already urged all local crypto exchanges to do an immediate examination of their security protocols. After the notice, exchanges BitFlyer and Quoine said they had not identified any data breach during the check.

Zaif suffered a security breach on September 14, but the server error was only identified on September 17. Hackers made off with cryptocurrencies amounting to 4.5 billion yen from users' wallets as well as with 2.2 billion yen from the assets of the company itself, with total losses amounting to a whopping $59.7 million.

Zaif previously received two administrative warnings from the FSA in March and June. The first cited instances of “system failure” and “fraudulent withdrawals.” Despite Zaif failing the check, the exchanged was not shut down.

The Japanese National Police Agency just recently released a report remarking that crypto thefts have already tripled in 2018. During the first six months of this year 60.503 billion yen ($540 million) worth of crypto was pilfered from various wallets. The biggest hack of this year took place in January of this year, when 58 billion yen ($520 million) worth of NEM coin were taken from the Coincheck crypto exchange.

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Posted from my blog with SteemPress : http://www.cryptalnews.com/fsa-investigation-zaif-hack/

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