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Bitpoint exchange hack: 50000 users to receive hacked funds in cryptocurrency

bitpoint exchange to return money in cryptocurrency

Bitpoint exchange hack came as a shock for users. But not so much for many others since Japanese cryptocurrency exchanges have been a target for the cryptocurrency scammers and hackers.

Japanese cryptocurrency exchange BitPoint fell victim to an exchange jacking as the firm lost over three and a half billion yen (Y3.5B) to the hackers in the process. The firm’s wallet was targetted, and the funds were stolen, including over two and a half billion yen of (Y2.5B) of customer funds.

The sum rounds off to around thirty-two million dollars ($32M) and the hack affected around half of its 110,000-strong customer base. The company fell victim to this attack a few days after lifting the operational improvement order in June this year.

After Bitpoint exchange hack the Japanese firm also revealed that thee also lost over two and a quarter million dollars ($2.3M) at exchanges outside of Japan. Thirteen percent (13%) of this sum belonged to the customers. All of these exchanges are using Bitpoint’s trading system.

The crypto’s wallet must have fell prey to a security leak as the hackers easily dived into it to steal the contents that include Bitcoin, Bitcoin Cash, Litecoin, etc.

This seems to be the case as the Japanese Financial watchdog; the Financial Services Agency (FSA), had called in BitPoint back in 2018 on the grounds of poor internal controls. The agency also told the firm to tighten its security.

The firm’s president has refused to step down from his position while issuing an apology and stating that the firm will return customer’s funds once the firm comes back online in a week.

Contradictory to his earlier statement, he added that it is not clear whether the firm will even resume operations again.

This means that the customers will have to wait for normal operations to resume before they can get their funds back. However, it is still unknown whether the firm will ever resume operations again.

Hackers have targeted Japan as many exchange jackings have happened in the country. The FSA needs to take a critical view of the events that occurred at BitPoint to raise the bar of security in the country.

Shawn Du'Mmett

Shawn Du'Mmett

Former IT development and consultant, remote team and collaboration expert, PM, CCO, writer, dreamer, idealist looking to collaborate with global teams on a global teal/turquoise organisation. Shawn's dream is working together openly, to get what writers need and want, and to solve biggest global problems. He is building a collaboration system from the start that everyone can own and define, allowing them to work together, to decide how it works and to their highest ideals.

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