Zaif and Fisco Share Financial Support Plan for Digital Assets after Crypto Exchange Hack
It has been almost a month since Zaif’s hack ending in total losses of cryptocurrencies worth 6.7 billion yen (around $59.7 million). There have been many developments with Japanese regulators cracking down on the exchange and the Zaif issuing statements proactively.
In the most recent turn of developments, Zaif has announced an official plan to provide financial support for affected customers’ assets, in an official notice posted today, October 10.
During the time of the hack, Zaif operator Tech Bureau Inc. showed it would be operating with Fisco Digital Asset Group to draft a joint support plan.
This notice by Zaif explains that the terms of the basic agreement between the two firms have been in official discussion as of Sept. 20., and originally specified that Fisco would present “financial support of 5 billion yen, enter a capital alliance enabling acquisition of a majority of the Company’s shares and allow for a majority of directors and the dispatch of an auditor.”
Some of the initial terms have now been changed in the two firms’ final agreement, states Tech Bureau. The notice declares that both firms are primarily focused on pursuing “the business transfer method,” from the viewpoint of both avoiding risks for Fisco, as well as the urgency of implementing a decision rapidly to protect customers. As per the now “legally stipulated” procedures, Tech Bureau will hold a general meeting for shareholders on Nov. 19, with the date of the business transfer to Fisco set for Nov. 22.
Under the final terms, Fisco will reportedly assume customers’ rights to receiving a return of all deposited cryptocurrency, stating that “[c]ompensation for some Monacoin will be made in Japanese yen.”
The notice sketches that compensation for affected Monacoin holders will be made in Japanese yen, at a rate of 144.548 yen ($1.28) per Monacoin. Compromised holdings will reportedly be repaid 60% in crypto and 40% in fiat currency. Moreover, all Monacoin transactions on the Zaif platform will halt completely as of today, Oct. 10, at 5 p.m. Announcements are reportedly to be made at a later date regarding the resumption of transactions, as well as when compensation withdrawals for compromised Monacoin holdings will commence.
With regards to BTC and BCH transactions, all buying and selling shall reportedly continue as normal on the Zaif platform as of today, whereas deposit and withdrawal services are scheduled to resume after operations have been assumed by Fisco, with a specific date yet to be declared.