Last week, a breach was made into a Japanese exchange where hackers took cryptocurrency worth $59 million. The exchange, called Zaif, was hit by cyber criminals and as per the reports from Cointelegraph that cites Tech Bureau Corp, the breach occurred on 14th September.
The exchange felt something was wrong by 17th September and discovered the following day, 18th Sep, that there has been a hack. According to the report, 5,966 bitcoins were stolen with each valuing at over $6000, along with the monacoin and bitcoin cash. The exact amount is still under investigation but the estimation is that it accounts for anywhere around $59 million.
As per the words of Tech Bureau, the majority of shares would be sold to financial services corporations in Japan. It would help them in acquiring around $40 million which would come handy in paying for the money that was stolen from customer funds.
Although the cryptocurrencies are hard to find and tough to manipulate, hackers know about the exchanges who tend to advertise themselves and hold a good share in the market. Thus, they are always under threat of being attacked and this is exactly happened.
In 2014, Mt. Gox, which was one of the largest cryptocurrency exchanges in the world, also based in Japan, lost a hefty sum off $473 million in a cyber attack. Ultimately, they were forced to file bankruptcy.
As the bitcoin struck the $20,000 barrier, a Japanese cryptocurrency exchange Coincheck surfaced into the news. They lost over 500 million in numerous digital currencies to an attack by hackers. It total, it was worth more than $400 million.
According to Fortune, virtual currencies have been luring cyber criminals and there are about 5 reported major hacks this year. It is one of the reasons why the professional money managers stay away from the market despite the investors coming in the game.