Cryptocurrency exchange “Bitpoint” hacked, 3.5 billion yen damage

Cryptocurrency exchange "Bitpoint" hacked, 3.5 billion yen damage

Cryptocurrency exchange "Bitpoint" hacked, 3.5 billion yen damage

One of the major cryptocurrency exchange platforms in Japan, Bitpoint, announced on July 12 that they were hacked and that there was a fraudulent outflow of virtual currency. The outflow is expected to total 3.5 billion yen (about $ 32 million), which is about 2.5 billion yen from customer deposits and about 1 billion yen owned by the company.

“We plan to compensate for damage”

Bitpoint has announced that it will carry out an emergency maintenance from 6:30 am on July 12, and all services including transactions and payments have been suspended from 10:30 am on the same day.

According to a press release announced by Remix Point, Inc., the parent company, the company is currently investigating the cause of the spill and identify the total amount of the damages. In addition, it plans to compensate the damage of all assets lost by customers.

5 different cryptocurrencies

In order to facilitate trading, Bitpoint manages some virtual currency as a hot wallet, and this time it is reported that the hot wallet was illegally leaked. There are five types of cryptocurrency that the company manages with hot wallet: Bitcoin (BTC), Bitcoin cash (BCH), Ethereal (ETH), Lightcoin (LTC), Ripple (XRP).

As for the circumstances of the incident, Bitpoint detected an error regarding the remittance of Ripple at 10:12 pm on July 11. After that, at around 11:39 pm, they confirmed the illegal spill of ripple and started investigation. The outflow of other virtual currency was confirmed around 2 am on the 12th of the following day, and sending and receiving of virtual currency were stopped at 6:30 am on the same day.

Unauthorized spillage time series

July 11, 2019 10:12pm: Detecting an error related to the ripple remittance. The correspondence system department etc. of Bitpoint Japan have started correspondence.
Around 10:39pm: Check for illegal outflow of ripples. Investigate the existence of other virtual currency outflows.
July 20, 2019 2:00am: Confirmed the illegal outflow of virtual currency other than ripple.
3:00am: Emergency meeting at Bitpoint Japan.
6:30am: Complete stop of sending and receiving virtual currency at Bitpoint Japan.
10:30am: Stopped all services of Bitpoint Japan, including trading and exchange of virtual currency.

What’s next?

With regard to the series of fraudulent outflows, Bitpoint Japan “is currently reviewing the amount of damage and the impact on the Company’s consolidated business results, and will promptly notify you as soon as details are known.”

About Viktor Sokolov 163 Articles
Nerd, entrepreneur & coffee aficionado. Believes that blockchain infrastructure and bitcoin will be the money system of the coming decades. Trying to make visible what this means for technology, economy, companies and societies.

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