Another Japanese Crypto Exchange Hacked: Hot Wallets At Fault

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It’s been a little more than half a year since a Japanese cyber-money bourse CoinCheck was hacked. Last week another Japan-headquartered crypto-exchange saw the theft. Zaif, a licensed trading platform lost $60 million worth of virtual coins. 

Among them, there were 5,966 BTC units. Taking into consideration that at that time one bitcoin cost around $6,400, the exchange lost over $38 million worth of bitcoins alone.

Another Formidable Attack

Zaif is another Japanese crypto trading venue which has experienced a hack attack with the sequent theft of $60 million worth of digital assets. The incident took place last week on September 14, but it is only this Thursday when the information was unveiled by the Tech Bureau.

A week ago, at about 5 PM Japan time on Friday, the trading venue cognized the seepage of funds which it found «unusual.» Afterwards, the business halted asset deposits and withdrawal services. 

The Curse of Hot Wallets: Going Down The Same Road

According to Tech Bureau, the further probe shed light on the way hackers stole the funds. The software company says the intruders got unauthorized access to platform’s hot wallets — online storage — and stole from it bitcoins, bitcoins cash and MonaCoin. The concrete number of BCH units remains unknown.

It is noteworthy that the January hacker attack on CoinCheck was also done through hot wallets. The latter is much less secure than their cold ilks, which store data offline. 

Zaif informed that its present asset reserved is only $20 million. For this reason, it agreed with a Japan-listed business Fisco to obtain $44.5 million investment in return for a considerable share of ownership. 

Tech Bureau emphasized that taking into consideration the self-willed fund access, it has reported the case as criminal to local law enforcement for the ulterior probe.

Image Source: Flickr

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