Japanese cryptocurrency exchange Bitpoint loses $32M to hackers

Bitpoint Crypto Cryptocurrency

Yet another Japanese crypto exchange falls prey to theft. | Source Shutterstock

BITPoint Japan Co. lost about 3.5 billion yen ($32.3 million) in virtual currencies after its online holdings were illegally accessed.

To reduce that effect, however, Remixpoint Inc, Bitpoint's parent company revealed in a follow-up notice that there are plans to compensate customers, although we could not ascertain to what extent because of the message being in Japanese.

A Google Translated version of Bitpoint's note informing customers that operations have ceased.

Based on its initial investigations, Bitpoint said that the hack, which was detected on the night of July 11, affected its hot wallet, not the cold wallet.

Remixpoint shares listed on the Tokyo Stock Exchange, dropped as much as 19%.

In September 2018, Zaif, also a licensed exchange under the Japanese Financial Services Agency, was hacked and lost $60 million worth in cryptocurrencies.

Japan's Financial Services Agency had issued an operational improvement order to Bitpoint past year.

BITpoint's site showcases no trading and account management fees, as well as its security measures, which makes this hack even more surprising.

Earlier this week Poland's largest crypto exchange, BitMarket, declared bankruptcy as hacking speculation circulated and late last month Singapore based Bitrue was hacked for over $4.5 million in XRP. Bad actors have stolen as much as $1.2 billion in the first quarter of 2019 through cryptocurrency scams, theft from exchanges, fraud, and misappropriation of funds. The order was lifted in June and clearly has not been enough to thwart the threat of cyber incursions. The attack led to the loss of five cryptocurrencies.

Earlier previous year, Coincheck was also breached, resulting in more than $520 million worth of cryptocurrencies being stolen. The regulator wasn't satisfied with the company's internal control.

Such lapses could wreck investor confidence and sabotage the impressive rally that the likes of bitcoin have delivered this year.

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