Zaif loses $60 Million in Cyberattack

Summary

In September 2018, Zaif, a Japanese cryptocurrency exchange, has been hacked. During the hack, the attackers managed to steal about $60 million worth of cryptocurrencies from hot wallets. As a result, Zaif’s business was sold to Fisco in order to compensate for the loss of users.

Attackers

The identity of the attackers has not been publicly disclosed. The investigation into the hack was conducted by the Tech Bureau, the parent company of Zaif, and Japanese law enforcement agencies, but no information has been released regarding the identity of the perpetrators.

Losses

The total losses are $60 million worth of cryptocurrency, including:

• 5.966 BTC(~ $38 million),
• undisclosed amount of BCH (~ $550 per coin) and MONA (~ $1.1 per coin).

Timeline

• September 14, 2018: The first attack was registered after a brief survey was conducted following a disturbance in deposits and withdrawals.
• September 17, 2018: Tech Bureau verified the hack. Zaif suspends all the movement of digital assets.
• September 18, 2018: Zaif reported a loss of about $60 million to the Japan Financial Services Agency.
• October 10, 2018: Tech Bureau, states that an agreement to transfer the business of cryptocurrency exchange Zaif to Fisco has been successfully concluded.

Security Failure Causes

• Weak operational security practices: The exchange failed to establish security safeguards to prevent the theft of hot wallet keys.