Japan cryptocurrency exchange loses $32 million of virtual money

Cornelia Mascio
Luglio 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. It said it hasn't discovered any funds missing from cold wallets - an offline wallet provided for storing bitcoins that is not linked to the internet.

Officials at the exchange detected a suspicious flow of Bitcoin, Bitcoin Cash, Ethereum, Litecoin and Ripple at about 10:10 p.m. on July 11.

Remixpoint shares listed on the Tokyo Stock Exchange, dropped as much as 19%.

In an announcement to the public, Bitpoint's mother company Remixpoint Inc. issued a statement saying the 23 million United States dollars of the illegal withdrawals belonged to its customers.

In September 2018, the Zaif cryptocurrency exchange lost $60 million following a hack.

The Tokyo-based MtGox exchange was shut down in 2014 after hackers got away with 850,000 Bitcoins then worth half a billion United States dollars.

The FSA said that 110 exchanges are reportedly trying to get licenses in Japan and are in "various stages of registration".

Japanese cryptocurrency exchange Bitpoint, owned by Remixpoint, halted all operations on Friday, July 12. Even after the involvement of the agency, critics remain skeptical towards the security of crypto exchanges.

Along with BitFlyer, QUOINE, BitBank and BTCBox, Bitpoint was ordered to improve measures against money laundering and enhance auditing and user-protection systems. Bad actors have stolen as much as $1.2 billion in the first quarter of 2019 through cryptocurrency scams, theft from exchanges, fraud, and misappropriation of funds. It added that it held some crypto holdings in the hot wallet to "execute virtual currency transaction smoothly".

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