Japanese Crypto Exchange Zaif Handover Complete As Previous Owner Vows For The Dissolution Of The Company
The handover from Tech Bureau, the company that had formerly operated the hacked Japanese crypto exchange Zaif, has finally been completed and now the company is 100% owned by the new buyer Fisco Cryptocurrency Exchange (FCCE). The handover was finished today, November 22.
FCCE, which has acquired the company, has affirmed that it will now assume the full responsibility of compensating all the users who lost their money in the hacking event. According to a press release that was sent by the crypto company, the compensation proceedings will begin before the end of November, which means that they will probably be started next week.
However, no time frame was actually set for deposits and withdraws in the crypto exchange up until this point. The FCCE has agreed to take over the procedures in October and will now assume the responsibility for compensating any users who may have lost their funds during the hack, which occurred on September 20.
At the time of the time, $60 million USD in funds have been stolen. While the sum of money is not necessarily too big when you compare it to other hacks, as some attacks cost a lot more, it was a huge attack that put the exchange in a very bad spot as it had to compensate its clients for the money that was stolen.
The Tech Bureau, which operated the exchange before the problems started, has decided to dissolve the company and to retire from the crypto industry for good. Last week, the exchange has finally began resuming the deposits and withdraws for NEM (XEM) tokens, which were the tokens that were more affected by the hack.
Japan Has A Bad History With Hacks
This is far from the first time that Japan has been affected by hacks. In January, the worst case in the history of the company happened and a crypto exchange called Coincheck, which was hacked and lost $534 million USD. This was one of highest profile theft cases with crypto as more than half a billion dollars were stolen.
After the hack, the exchange was bought by an online broker company called Monex. After the incident, the Japanese authorities started to get more severe with the crypto exchanges because companies like Coincheck were acting in Japanese territory and they were simply not taking the necessary precautions to protect itself and their customers.
This ushered a new era of crypto regulation in Japan, which is very crypto friendly, but also concerned with regulation and safety. The standards were raised, so now only crypto exchanges with good defenses are allowed most of the time.
However, it looks like many exchanges still have to upgrade their security so that more cases like the hack of Coincheck and Zaif proved to the Japanese crypto and financial regulators.