Japanese Crypto Exchange Bitpoint Affirms 50,000 Clients Were Affected By $32 Million Hack

Bitpoint, a Japanese crypto exchange, was recently hacked. The company evaluated the situation and now it affirmed that the hackers were able to steal 3.5 billion yen (JPY), around $32 million USD. The money, which was in a hot wallet, belonged to both the company and around 50,000 of its 110,000 clients.

It was certainly an awful time to be hacked as the company had just seen an operational improvement order be lifted from it at the end of June. It doesn’t seem like the company made a good job at improving, does it? Hackers seemed to actually find a pretty easy route into the company’s systems.

The order was originally sent out by the Japanese Financial Services Agency (FSA) because the company was lacking protections in order to make the funds of the clients be safe enough.

Apart from the money that was originally lost, it was also revealed that the company lost around $2.3 million USD at exchanges that operate outside of Japan, too. The cash was generally used for the trading system.

The money that was lost accounted for around 13% of all that the company had. The wallets contained Bitcoin (BTC), Ether (ETH), Bitcoin Cash (BCH), Litecoin (LTC) and Ripple’s XRP.

Will Bitpoint Get The Confidence of its Clients Ever Again?

How can you actually manage to get the confidence of your clients back when you display such poor work? The president of Bitpoint, a man named Genki Oda, has reportedly refused to step down from his role after the hack. The formally issued an apology to the company’s clients and affirmed that the clients will get their money back after operations are resumed.

At the time, however, no one is actually sure when will the operations actually be resumed, mostly because there are some investigations taking place right now and they need the system to be shut down before any attacks happen. If the point of entry is not properly found, the hackers might just attack once more.

Unfortunately, this means that all the clients who ended up losing their funds will end up in limbo or a while. They may get their money soon, but the timeframe is simply not clear, so there is no way to make an educated guess about what will happen and when.

Another issue that the company will possibly face is that the FSA will be out for it again now that Bitpoint has clearly failed to improve the protection, which was already a problem a year ago.

If there is a secondary hack and the exchange lose even more money, too, it will be almost impossible to pay the customers and then we’ll see another Mt Gox case here.

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Gabriel Machadohttps://bitcoinexchangeguide.com/
Brazilian journalist who is interested in the future of the financial world. Has a special interest in the blockchain technology and the global financial markets. Covers economic and technology news with a focus on the fintech industry and has been writing about the cryptocurrency market since the start of 2017.

[Alert] Use the author's self-conducted information at your own risk, do you own research, never invest more than you are willing to lose.

[Disclosure] The published news and content on BitcoinExchangeGuide should never be used or taken as financial investment advice. Understand trading cryptocurrencies is a very high-risk activity which can result in significant losses. Editorial Policy \\ Investment Disclaimer

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