Zaif Exchange Disclose Refund Plan for $60 Million Crypto Hack

Article by · October 11, 2018 ·

The company behind the Japanese crypto exchange Zaif, Tech Bureau, has disclosed a reimbursed arrangement to payback users following a $60 million hack that befalls the platform last month.

According to a release byTech Bureau said on Wednesday, an agreement has been signed with Fisco which is a publicly known investment industry in Japan. Part of the agreement is to transfer the business of Zaif to Fisco Cryptocurrency Exchange. According to the two companies, the move would prevent future risks for Fisco as well as users on the platform.

Zaif, which is present among the 16 licensed crypto exchanges in Japan, has witnessed a hack on the 20th of Sept. when about $60 million worth of cryptocurrencies got missing, together with almost 6,000 bitcoin. According to the previous report, bitcoin cash and the monacolin cryptocurrency were among the compromised assets.

Tech Bureau stated that as part of the agreement deal, Fisco would begin the customer compensation process, where users who lost bitcoin and bitcoin cash crypto assets would be refunded using the two crypto assets of the firm. Fisco claimed that the firm began managing a bitcoin exchange since August 2016.

However, Tech Bureau stated that for the stolen monacoin, the users would be payback in Japanese yen at a rate of 144.548 yen, or $1.28, per unit.

According to the announcement made, shareholder meetings is expected to be held by the two firms in October before the business transfer deal would be carried out on Nov. 22.

Tech Bureau stated that its cryptocurrency exchange business would be dissolved after that and the license registered with the Financial Services Agency, Japan’s financial market regulator would be abolished.

An earlier report right after the hack revealed that an initial contract was signed between theTech Bureau and Fisco that the latter would give 5 billion yen, or $44.5 million, to help Zaif’s compensation arrangement and to seek a significant ownership of the platform. However, after the agreement, alterations were made to the initial plan with a business transfer move.

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