Japan firm says $32 mn missing in cryptocurrency hack

Bitpoint Japan Hack $32 million

Bitpoint Grinds to Halt at Tokyo Exchange After Reported Hack of Virtual Monies

If there is any country in this world where you should be anxious about storing your cryptocurrency, it is Japan.

This time, a licensed Japanese cryptocurrency exchange, Bitpoint reported Friday to have been hacked of some crypto assets totaling around $32 million dollars. Soon after the announcement, shares in Remixpoint plunged nearly 20%.

The five different kinds of cryptocurrency handled by BITPoint Japan are: bitcoin, bitcoin cash, ethereum, litecoin and ripple.

All transactions have been halted, as Remixpoint said it would compensate customers for their losses.

The incident follows the theft of 6.7 billion yen from the Zaif exchange, operated by Tech Bureau Corp., in September 2018.

In an announcement to the public, Bitpoint's mother company Remixpoint Inc. issued a statement saying the 23 million United States dollars of the illegal withdrawals belonged to its customers. Also, there were no claims for reimbursement for the customers of the exchange.

Japan has been relatively open to cryptocurrencies, which use a technology called blockchain, despite some high-profile heists.

Major cryptocurrency exchange Mt. Gox was hacked and collapsed in Japan in 2014.

Hacks have even managed to shut down exchanges completely.

Along with BitFlyer, QUOINE, BitBank and BTCBox, Bitpoint was ordered to improve measures against money laundering and enhance auditing and user-protection systems.

The company that runs the exchange, Remixpoint, discovered that ¥3.5 billion worth of various digital currencies had disappeared under its management.

Communication between crypto exchanges is vital in fighting with this cumbersome vice that is increasing in frequency. This happened after employees of the exchange noticed a suspicious withdrawal of funds from their hot wallet on Thursday.

Since funds are usually transferred from one exchange to another during hacking, establishing excellent communication will be vital in fighting this vice. The four crypto exchange are Upbit, Korbit, Coinone, and Bithumb. Do your market research before investing in cryptocurrencies.

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