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Funds are not ZAIF – Where’s our Crypto?

stolen bitcoin

After last months hack that saw Japanese crypto exchange ZAIF get drained of $6.7 billion Yen ($60 million) in assets, customers are yet to be compensated.

Several of ZAIF’s hot wallets were hacked on September 14 and of the assets stolen, $40 million worth was that of customers. Following the hack, the owners of the platform, Tech Bureau, claimed they would be able to compensate customers from capital raised in a partial sale of ZAIF to Fisco Digital Assets Group.

Now, however, it seems that sale may not have been entirely finalized.

In an announcement earlier this week, Tech Bureau stated:

“After concluding the basic agreement, we are advancing consultation and negotiations for concluding a formal contract, there is no change in the policy to ensure thorough compensation for customer assets, and we are continuing to consider the details of specific response.”

They did not offer a timeline on when compensation may be available.

With over $500 million worth of assets stolen from Japanese crypto exchanges this year alone, the question of security should no longer be a vague one. Security breaches don’t only harm those invested in the exchange but the global crypto community as a whole. The looming threat of theft and loss of assets is one of the number one reasons that hinder widespread cryptocurrency adoption and delays institutional investment and regulatory decisions.

After the $520 million Coincheck hack earlier this year, the Japanese Financial Services Agency (FSA) reportedly inspected and upgraded the security systems of crypto exchange’s in the country, including that of Tech Bureau. Five years on from the now infamous Mt Gox exchange theft, of which customers are still awaiting compensation, it makes you wonder if crypto exchanges will ever manage to beat the hackers?

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