Bitcoin has been a legal form of payment in Japan since April 2017. (Shutterstock)

Tokyo Crypto Exchange Loses US$32 Million in Latest Hack

Remixpoint, which runs the BITPoint crypto exchange in Tokyo, just confirmed on Friday (7/12) that it just lost various digital currencies worth US$32 million under its management in a latest apparent hack. The firm said the loss includes bitcoin, litecoin, ripple, and ethereum.

It is revealed that US$23 million of the total loss belonged to the customers, while $9.2 million to the exchange. The firm has announced an apology in an official statement and halted its service after the hack.

The hack was discovered since Thursday night when the firm’s outgoing funds transfer system appeared to be an error. It said the cryptocurrency stolen were in what so-called ‘the hot wallet’, which is connected to the internet. However, currencies in ‘the cold wallet’, the offline one, were not affected since it has tighter security.

An investigation will be conducted to further find the reasons for the hacking and findings will be disclosed as soon as possible. The Remixpoint also said that it would compensate customers for all the losses.

Following the news of the hacking incident, the parent company Remixpoint’s shares plunged 19% and were untraded in Tokyo per midnight at local time, Bloomberg reports.

Even though the incident was the latest hack involving cryptocurrency after some other high-profile heists in Japan, the country has legalized the form of payment since 2017 and been relatively open to cryptocurrency. It has also set up a licensing system to oversee its use.

In response to the hacks, the Japanese Financial Conduct Authority has actually proposed a ban on cryptocurrencies since there is still a security gap that could lead to huge losses for retail consumers.

Source: https://time.com/5625194/japan-cryptocurrency-remixpoint-hack/