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Japanese Crypto-Robbery

Crypto-currency robberies may be safer to human lives but are no less painful to victims financially.

Japanese Crypto-Robbery. Another crypto-currency raid happened in Japan leading to the perpetrators getting away with about 60 million dollars-worth of cryptocurrency.

Within two hours, Japanese cryptocurrency exchange Tech Bureau Corp. was hacked last September 14 which was unfortunately discovered four days after the culprits managed to steal 6.7 billion yen or 59.67 million dollars-worth of cryptocurrency composed of Bitcoin, Bitcoin Cash and Monacoin; more than half of which belonged to customers.

The cryptocurrency was stolen from internet-connected “hot wallets” which are more vulnerable than cold wallets that remain in the dark until connected.

The customers won’t have to wallow in despair though. Tech Bureau managed to merge with JASDAQ-listed Fisco Ltd. For a majority ownership investment amounting 5 billion yen in order to pay back the customers.

This comes after another massive cryptocurrency hack last January when crypto-exchange Coincheck lost a massive 530 million dollars-worth of digital currency. Coincheck in turn was absorbed by Japanese online brokerage group Monex Group Inc.

 

Amazing how resilient the industry remains, hack after hack. Despite these, over 160 entities express their willingness to enter the cryptocurrency exchange market, perhaps due to the recent Bitcoin surge. Bitcoin has since dropped but value remains at over 6,000 dollars.

Japanese crypto-exchanges have lately come under fire for lack of security and mismanagement, and will continue to burn more after the recent hack of Tech Bureau. The Japan Financial Services Agency has yet to approve the aforementioned cryptocurrency exchange applicants.

The FSA conducted an investigation and audit of various cryptocurrency exchanges and found that security was lax and management was sloppy. Apparently Tech Bureau hasn’t learned its lesson.

Further measures will be required to tighten security amidst Japan’s cryptocurrency regulation, the first country to do so. Regulation is seen by some as a threat to the openness and freedom of cryptocurrency much like the fledgling internet before censorship. But Japan sees it as more of an encouragement and a way to include much needed security measures much like cryptocurrency’s physical counterpart.

 

Photo by Ryo Yoshitake on Unsplash

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