The owner of Zaif exchange, Tech Bureau has decided to suspend the new account registration at their trading platform for temporarily.
This decision comes on the 28th of September. After 14 days of this decision, a hacking was attacked at Zaif. It caused all the cryptocurrency exchange which worth more than 60 million dollars of damages. Tech Bureau said that it would restart new registrations as they decide on a solid plan to repay their customers. It has reached out the other Japanese investment management firm which is names Frisco for 44 billion dollars in bailout agreement. They are expecting financial support to their customers can back their financial assets, but the deal is still under investigation and examination.
After concluding the basic agreement, they are advancing consultation and the negotiations for a formal contract. There is no change in the policy of making sure thorough compensation for the customer assets. They are continuing to consider the details of a specific reply. As the content is confirmed, they like to report soon.
As a clear reimbursement policy takes place, Zaif believes that it would be ideal to keep the new customers away from signing up on its bitcoin exchange. The suspension will not affect the existing customers whose identity verifications are open still.
Japan’s Financial Services Agency confirmed that it is investigating the security policies and the practices at the tech Bureau’s Zaif exchange. The agency has begun studying and examining the user’s protection systems which are installed in the offices of the Tech Bureau.
It had served two consecutive warnings to the Tech Bureau. The warnings are regarding improve their operating systems in their business. The agency had reached out to other cryptocurrency exchanges with the same advice. It has been awakening of the 509 million dollars was hacked in CoinCheck in January.
Japanese police have identified more than 160 cryptocurrency thefts which are about 532 million dollars. More massive thefts received attention than the smaller hacks. The agencies are never recovered stolen funds.
No KYC to repay their customers:
Hackers have remitted the stolen Tech Bureau funds to exchange offshore currencies. The recipient wallets have not gone through any KYC and also Anti-money Laundering policies and the guidelines. It would make it tough for the Japanese police to recover the digital currencies to their customers.