Close  

Japan firm says $32M missing in cryptocurrency hack

/ 05:26 PM July 12, 2019

TOKYO, Japan — A Tokyo-based cryptocurrency exchange said Friday it had halted all services after losing cryptocurrency worth more than $32 million in the latest apparent hack involving virtual money.

Remixpoint said its subsidiary BITPoint Japan discovered overnight that about 3.5 billion yen ($32.3 million) in various digital currencies had gone missing from its management.

ADVERTISEMENT

The apparent hack was discovered after an error appeared in the firm’s outgoing funds transfer system on Thursday night.

It said the cryptocurrency went missing from a so-called “hot wallet,” which is connected to the internet, but that currency held in “cold wallets” that are offline was not affected.

FEATURED STORIES

RELATED TOPICS

BITPoint Japan handles various virtual currencies, including bitcoin, ethereum, and ripple.

Remixpoint said the firm was still analyzing the loss and offered no further details.

It said it would compensate customers for the losses. Around 2.5 billion yen worth of the missing currency was customer funds, with the rest owned by the firm.

Remixpoint shares plunged 18.6 percent following the announcement.

The incident is the latest in a string of similar cases at Japanese cryptocurrency exchanges.

In 2018, Japan-based exchange Coincheck suspended deposits and withdrawals for virtual currencies after it was hacked, resulting in a loss worth half a billion dollars at the time.

ADVERTISEMENT

And the Tokyo-based MtGox exchange, which at one time handled nearly 80 percent of all global bitcoin transactions, was shut down in 2014 after 850,000 bitcoins (worth half a billion dollars at the time) disappeared from its virtual vaults.

The hacks have prompted greater oversight of crypto exchanges by Japan’s Financial Services Agency but critics says security gaps remain. /ee

TOPICS: BITPoint Japan, cryptocurrency, digital currencies, Japan, Remixpoint
LATEST STORIES
MOST READ
Don't miss out on the latest news and information.
View comments

Subscribe to INQUIRER PLUS to get access to The Philippine Daily Inquirer & other 70+ titles, share up to 5 gadgets, listen to the news, download as early as 4am & share articles on social media. Call 896 6000.

For feedback, complaints, or inquiries, contact us.


© Copyright 1997-2019 INQUIRER.net | All Rights Reserved

We use cookies to ensure you get the best experience on our website. By continuing, you are agreeing to our use of cookies. To find out more, please click this link.