32 mln USD of cryptocurrency stolen from BITPoint Japan

Marco Green
July 12, 2019

Bitpoint, a licensed cryptocurrency exchange based in Japan, has reportedly shut down operations following a hack that caused the platform to lose ¥3.5 billion yen ($32 million) in cryptocurrency. The company said that it detected "fraudulent outflows of virtual currency stored in BPJ-managed hot wallets" on the night of July 11. This suggests the exchange's network was thoroughly compromised. This happened after employees of the exchange noticed a suspicious withdrawal of funds from their hot wallet on Thursday.

The losses, which include bitcoins as well as Ethereum, Ripple and other kinds of cryptocurrencies, are under investigation.

The security of Japanese crypto exchange BitPoint has been compromised, the firm announced earlier Friday. The agency believed that the cryptocurrency exchange had poor internal controls, and wanted Bitpoint and a few other exchanges to ensure the enforcement of proper measures to protect users.

The Tokyo-based company, established in 2016, said it will compensate the holders of the stolen assets totaling about 2.5 billion yen.

The exchange did not say if it can or plans to refund customers.

The Bitpoint hack comes after a series of major heists that took place in Japan over the years.

Although it's not yet clear at the moment which types of assets were siphoned, the crypto exchange is said to have lost about 2.5 billion Yen (25 million USD) from customer accounts and 1 billion Yen (9.2 million USD) from the exchange's deposit account. The exchange's website cites the capital of JPY 4,430 billion (USD 41 million).

However, it seems that Japan can not calm down until it reaches the $1 billion mark, and the hackers are working hard in that direction.

Other reports by Click Lancashire

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