Tech Bureau inc., the owner of Zaif exchange, determined to suspend new account registrations at their trading platform temporarily.
The decision came on September 28, 14 days after a hacking incident happened at Zaif and caused the crypto exchange over $60 million worth of damages. Tech Bureau said in its press statement that it might resume new registrations as they settle on a concrete strategy to compensate their customers. It has reached out to Fisco, another Japanese investment management company, for a $44 billion bailout agreement. The said financial backing expects to back customers’ monetary assets but, according to a new development on October 1, the deal remains under examination.
“After concluding the basic agreement, we are advancing consultation and negotiations for concluding a proper contract, there's no modification in the policy to make sure thorough compensation for customer assets, and we are continuing to think about the main points of specific response…As shortly as the content is confirmed, we'll report it promptly.” – tech Bureau said.
As a clear compensation policy takes shape, Zaif believes it'd be ideal to stay the new customers away from signing up on its Bitcoin exchange. The suspension, according to tech Bureau, won't have an effect on existing customers, as well as those whose identity verifications are still open.
FSA Launches Investigation
Japan’s Financial Services Agency (FSA) confirmed that it's investigating the protection practices at Zaif exchange. The agency has already begun examining the user protection systems installed in tech Bureau offices.
FSA had served two consecutive warnings to the company – in March and June – to enhance their business operations. The agency had also reached out to alternative cryptocurrency exchanges with the same advisory, reportedly in the wake of Coincheck’s 509-million-dollar-hack that took place in January.
From January to June, Japanese police has already identified over 160 cryptocurrency thefts totaling circa $532 million. More huge thefts received attention than smaller hacks. However, the agencies never recovered stolen funds.
Hackers have remitted the stolen Zaif funds to exchanges offshore. The recipient wallets reportedly haven't gone through any KYC/AML guidelines, that could make it tough for Japanese police to recover the digital assets.
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