Hacked Bitcoin Exchange Zaif Stops New Registration

Tech Bureau Inc. the owner of Zaif exchange has decided to temporarily suspend the registration of a new account on its trading platform.

The decision came on September 28, 14 days after the hacking incident that occurred at Zaif, which caused more than $ 60 million in damages to the crypto-exchange. Tech Bureau said in a statement that it will resume new registrations as they decide on a specific compensation strategy for their customers. It asked another Japanese investment management company, FISCO, for financial assistance in the amount of $ 44 billion. This financial support involves the support of financial assets of customers, but, according to the new development of October 1, the transaction is still under consideration.

As a clear refund policy is being formed, Zaif believes it would be ideal for new customers not to sign up for a bitcoin exchange. According to Tech Bureau, the suspension won’t affect existing customers, including those whose ID cards are still open.

The Japanese financial services agency (FSA) has confirmed that it is investigating security practices on the Zaif exchange. The Agency has already started to study the user protection systems installed in the offices of the technical Bureau.

The financial supervision authority issued two consecutive warnings to the company in March and June to improve its operations. The Agency also reached out to other cryptocurrency exchanges with the same Advisory opinion, reportedly following the $ 509 million Coincheck hack that took place in January.

From January to June, the Japanese police have already identified more than 160 thefts of cryptocurrencies totaling about $532 million, and the agencies have not returned the stolen funds.

Hackers transferred the stolen Zaif funds to offshore exchanges. It is reported that the wallets of the recipients did not pass through any KYC/AML guidelines, which may make it difficult for the Japanese police to recover digital assets.