When it comes to cyber-attacks on cryptocurrency services prover such as crypto exchanges, trading platform, wallet service provider, etc. Japan has always been in limelight. Recently, another Japanese crypto exchange stopped its trading and exchanging service due to major cryptocurrency hack resulting in loss of about 3.5 billion Japanese Yen ($32 million) worth cryptocurrency which includes popular cryptocurrencies such as Bitcoin, Bitcoin Cash, Ripple, etc.
On July 11th, Bloomberg reported that Japanese crypto exchange and trading service provider Bitpoint ceased its operation after losing $32 million of worth crypto funds were stolen in the hack. As reported by Bloomberg, out of 3.5 billion Yen, 2.5 billion yen belonged to customers while the rest belonged to the exchange.
It is not the first time that such a huge worth of cryptocurrencies has been stolen from Japanese crypto exchanges. BitPoint’s case came more than a year after of Coincheck. Coincheck, Japan’s one of the largest cryptocurrency exchanges, had reportedly lost $400 million in a hacking attack. The country’s financial authorities ordered exchanges to take extreme security measurements to bolster their security controls and internal processes.
Coming back to BitPoint, the exchange is owned by Remixpoint Inc., a Japanese conglomerate which currently operates in energy, financial, travel and automobile sectors. The stock price of the company fell to 19% to their daily lower limit and was remain untraded in Tokyo as of 1:44 p.m. as no deliverables were accepted by traders.
Bloomberg further reported that the funds were mainly stolen from the hot wallet which means the only wallets which were online witnessed the hacking attack. The targeted hot wallet had Bitcoin, bitcoin cash and three other major cryptocurrencies. It has reported that none of the cold wallets witnessed such an ordeal and no missing funds were found from them. Bitpoint had responded by ceasing all the services that include trading, exchanging, withdrawals, and deposits. Customers of Bitpoint has also received the emails that the company would suspend all the services as it investigates the matter.
With this Bitpoint finally registered its name in the list of cryptocurrency operators which has been ordered by Japan’s Financial Services Agency to improve internal controls and take extreme security measurements in order to prevent the hacking attacks and illicit activities. Japanese financial service agency is pretty concerned about the issue that it confirms the security measures via visiting the site and improvement orders. In some cases, it can even suspend the services and cancel the service provider’s license as well.