Japan has again become the focal point of discussion after suffering through a security breach incident. A recent hack which took place in a domestic cryptocurrency currency exchange named “Bitpoint” has caught the attention of the public and become a matter of concern in the country. The updates have been revealed by an official announcement on July 12.
As per the information, the Japanese crypto exchange has suspended all the services from the platform after a loss of 3.5 billion yen (~$32 million) in a hack that plundered Bitcoin (BTC), Ripple (XRP) along with other altcoins such as Litecoin (LTC), Ether (ETH), and Bitcoin Cash (BCH) that were stored in the shaken hot wallet.
Reportedly, out of ~$32 million, ~$23 million shown as customers possession and the rest belonged to the exchange. However, it is displayed on the note that Bitpoint’s cold wallets are not believed to be compromised in this illegitimate act by the bad actors as per the investigation by the establishment.
Bitpoint has notified its users about the deferment of its various services including remittance (sending) and receiving (deposit) on July 12, while mentioning that the platform would resume the process soon without disclosing the actual time frame.
Bloomberg, the mainstream media outlet mentioned that Bitpoint Japan, Inc. is a subsidiary firm which is owned by a Japan-based electric services parent company Remixpoint Inc. Allegedly, after the hack, the parent firm has to suffer a major loss which led to the dropping of 19% shares instantaneously, and was “untraded in Tokyo as of 1:44 p.m. “on a glut of sell orders.”
Coincheck & Mt. GoxHack: The Implications On Japanese Crypto Exchanges
The Coincheck hack resulted in the shedding of over 500 million NEM (XEM)tokens (that time around $530 million) from the cryptocurrency exchange. The unfortunate calamity broke the strength of the organization to repay the loss, to all the affected users earlier. However, later the company decided to pay as compensation from its own capital to around 260,000 victims.
Mt. Gox saw a security breach of approximately 850,000 Bitcoin which got stolen from the platform. The biggest hack ever that took place during 2011, in Japan. The crime led to the subsequent closure of the exchange in 2014. Reportedly, around 200,000 BTC has since been regained. Although the defunct crypto trading platform left 24,000 creditors in the dark on how they would be able to get their funds back.
After the continuous crime and fraud which occurred in the crypto-friendly nation forced the regulators to impose rigid regulations which directed various intensified interventions and compliances related to anti-money-laundering (AML). The rules are required to be accorded by all cryptocurrency ventures and digital currency exchanges. Out of many, Bitpoint as a crypto trading platform is also exercising under the radar of the overseers and serving the business improvement order to the lawmakers.
Earlier in Feb, a report leaked out, that indicated Mt. Gox sold a large number of digital assets which included majorly Bitcoin (BTC) and Bitcoin Cash (BCH) to Bitpoint in order to repay its creditors.
The concurrent hacking incidences are raising big questions on the lawmakers about their investigating and rulemaking process. In order to protect the hard-earned money of the customers who are investing in the digital money like gold 2.0, the regulators have to take serious measures and need to clarify what they are doing and how can they be able to improve the law-breaking conditions and anti-money laundering practices which are disappointing and bewildering the crypto-friendly investors in a consistent manner.
Stay tuned with KoinPost for more updates on Bitpoint.
Tags: Altcoin News, Fraud, Japan, Singapore, Cryptocurrency Exchange, XRP, BTC, ETH, LTC, NEM, Hackers, Crimes, BitPoint, the Financial Service Agency (FSA), Coincheck Hack, Hot wallet, Binance, Bitrue, Japan, Bankruptcy, Court, Mt. Gox