Regulators Visited Coincheck Office

The Financial Services Agency of Japan inspected exchange's office due to recent hack
02 February 2018   441

The Financial Services Agency of Japan (FSA) will personally check the offices of Coincheck. This is reported by Nikkei.

Coincheck promised to pay the affected users $ 425 million, that is, about 90% of the stolen amount, which in this case is better than nothing.

The FSA, in turn, imposed a fairly mild penalty. In fact, the regulator only demanded to strengthen security measures to prevent a similar situation from happening again, and to provide a written report on the incident before February 13.

However, later the agency decided to expand the list of preventive measures and visit Coincheck offices to make sure that the exchange has the means necessary to pay the affected users, primarily in yen.

Another reason for the audit is the regulator's desire to make sure that the exchange really strengthened the security of its systems, and to find out how the hack happened at the scene of the events. As noted by Nikkei, one of the reasons for the hacking was the way of storing crypto currencies on Coincheck: NEM wallets maintained a permanent connection to the Internet, while many exchanges used cold storage to store such large sums.

This episode marks the first face-to-face check of the exchange by the Japanese regulators. Commenting on what is happening, Finance Minister Taro Aso said: "The investigation is in the interests of users." He also demanded that exchanges treat customers "properly" and report on what they do to minimize risks.

Japan to Tighten Regulation Due to Zaif Hack

$ 62 000 000 worth cryptocurrency was stolen from the Zaif exchange few weeks ago
25 September 2018   82

Hacking of Zaif exchange is the reason for toughening control over the market by the financial regulator of Japan, Reuters reports.

The first measure taken was administrative sanctions against the exchange and its operator Tech Bureau Corp. The Financial Services Agency (FSA) has expanded the list of requirements for the latter, pointing out the need to identify preventive measures and search for the organizers of the theft.

Shortly before that, researchers of the Japanese financial company Tech Bureau Corp could not provide details of the theft of $ 62 million from the Zaif crypto exchange at the request of the FSA. The Osaka-based operator had to investigate the causes, consequences of the theft and options for compensating the victims. According to the Agency, the financial company could not cope with the task.

According to the Tech Bureau, the exchange was hacked on September 14 within a few hours. The problem with the server was discovered by the site staff on 17 September. Official confirmation of the incident and notification of the authorities was made only a day later.

Recall, the theft of $ 60 million from the Japanese stock exchange Zaif caused a surge of volatility of bitcoin. For a short time the price was able to overcome the distance of $ 400.