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Hackathon Excises Conducted By a team of Experts Leads to Success

Hackathon Excises Conducted By a team of Experts Leads to Success

On September 14, Zaif crypto exchange was the victim of a hack that saw the exchange lose 6.7 billion yen which loosely translates to $59 million. According to investigations, it seems hackers gained access into the exchange system after the occurrence of a glitch. Later on, the exchange discovered the glitch was the hack.

According to recent reports, cybersecurity experts from Japan Digital Design Co (JDD) working with their counterparts from security firm EL Plus and TokyWestern have traced the origin of the hack. The two teams performed a hackathon exercise late last month that led to the root of the hack been discovered. From the hackathon, they were able to identify the source of five transactions that were moving MonaCoin one of the stolen coins. The hackathon was performed on a large scale of infrastructure consisting of multiple cloud services.

Funds Stolen

From the hack, the perpetrators walked away with 5,966 Bitcoin (BTC) together with MonaCoin (MONA) and Bitcoin Cash (BCH). The total amount stolen stood at $59.7 million or 6.7 billion yen. But in detail, 4.5 billion yen was stolen from Zaif user’s hot wallet while the remaining 2.2 billion yen was from exchange’s assets.

As Zaif handles issues with the hack incidence, the FSA is also looking to get answers from the exchange regarding business improvement regulations. According to Japan’s Financial Service Agency, Zaif has failed to provide enough information concerning the hacking incidence. Further on the FSA claims Zaif exchange has not complied with any of the business improvement orders sent. Furthermore, FSA considers the way the operator handled the investigations and its response to customers is inadequate. While issuing its third improvement order to Zaif exchange, the FSA also sent a warning to the operator. This time around if the exchange fails to comply with the order the regulator will resort to cancel the exchange registrations or suspend its business. The other business improvement orders were sent in June and March respectively.

In a bid to pay off its customers and bounce back, Zaif exchange announced it’s in talks with Fisco Digital Asset Group to get 5 billion yen. The money will help Zaif become operational. If the deal goes through Fisco will become the majority shareholder in Zaif exchange. With the finances in place, Zaif can reclaim its glory as the 101 largest cryptocurrency exchange per trading volume according to CoinMarketCap.