A $60 Million Theft From a Platform That Was Impossible to Be Hacked

On Wednesday, September 19, the price of bitcoin for a short period of time first fell to $6,100, and then swiftly went up, exceeding the $6,500 mark.

An unusual pattern in the market was accompanied by reports about the hacking of the Japanese exchange Zaif.

“Just reported in Japan: Japanese Exchange Zaif hacked, 5966 BTC (37million USD) stolen from hot wallet (stolen 5 days ago, and just reported now!). BCH and MONA also potentially stolen,” Kai Kurokawa, developer of the LBRY platform, wrote on Twitter.

In additional tweets, Kurokawa said that the cost of damage is estimated at $60 million. At the same time, two-thirds of the stolen coins were investors’ funds, the rest belonged to the stock exchange. The exact number of missing BCH and MONA coins remains unknown.

According to the developer, the exchange took four days to detect a hack.

On Zaif site in the meantime, there was a message in which the fact of hacking of the exchange is confirmed. At the same time, unusual activity began on September 14. Also, the exchange speaks about stopping withdrawal of funds and taking deposits.

Despite the fact that the news about Zaif hacking led to a sharp decrease in the price of bitcoin, after just 10 minutes it quickly went up. This time, the reason seems to be the purchase of 5 million market contracts XBTUSD at $6,469 at the BitMEX exchange.

WhalePanda also recalled that on September 19, contracts for bitcoin-futures on the CBOE exchange expire:

Oh.. We Were Talking About Zaif Claiming That It Is Not Hackable.

Yes it is, everything is, but they are claiming on their website that it is practically impossible to be hacked.

“We externally block the exchange system at multiple levels, and we are building a system security environment where hacking into the internal system is practically impossible. Therefore, all outside access to the database etc. is impossible.”

According to a company statement detailing the hack, translated from the original Japanese (via Google translate), “it turned out that some of the deposits and withdrawal hot wallets were hacked by unauthorized access from the outside, and part of the virtual currency managed by us was illegally discharged to the outside.” The paragraph thanks to Mashable.

This is the Zaif website page that has all About the Zaif usage risk and security system. Read it carefully!