Customer In The Dark Over Compensation Plan After Hack

The hack was the second largest to be recorded in the history of Japan within a year.  


Tech Bureau Working on Logistics To Compensate Zaif Customers

Customers operating on the Zaif cryptocurrency exchange are still in the dark over any compensation plan following a recent hack. The exchange which is run by Tech Bureau suffered a $60 million hack.

Following the hack, Zeif no longer accepts new users on the platform. The operator announced that it is currently working on compensating the users who are believed to have lost about $40 million. The suffered losses in bitcoin and bitcoin cash.

Last month, the operator revealed that it will make public the compensation plan by the end of September, however, nothing came up. Tech Bureau insisted that there was compensation plan but it required extra time to make it public

During the attack, three cryptos were affected on September 14. However, the hack was discovered three days later by Zaif engineers. Immediately the hack was discovered, Zaif reached out to FSA for investigations and the way forward. It took another three days before the operator made public the exact losses incurred during the hack.

As a means of calming down the affected customers, the operator stated that it had signed a deal with Fisco Digital Asset Group. Under the deal, Fisco was meant to receive Zaif’s shares for $44.59 million cash. The money will be used to cater for the losses incurred by customers. At the moment, no terms have been reached through discussions are still ongoing.

Japan’s Hacking History

The hack has been ranked as the second largest in Japan this year. Early this year, Coincheck suffered a hack of $530 million. Coincheck immediately announced a compensation plan for the affected victims. The compensation was effected about six weeks after the attack.

Even as Tech Bureau aspires to clear the compensation tackle, it is also facing scrutiny from the FSA. The firm is currently facing penalties from the regulator.

The firm has also been on the spot over the use of hot wallets to store client’s fund. This feature is believed to have caused the hack.

2 years ago

Start Weekly Digest

Similar news