Japanese cryptocurrency exchange Bitpoint was hacked last week when hackers stole 3.5 billion yen ($32 million) from the exchange’s hot wallet, of which 2.5 billion yen were customer funds.
It has now come to light that around 50,000 of its 110,000-strong customer base were affected by the hack, just days after an operational improvement order, imposed last year, was lifted at the end of June.
¥3.5 billion hacked from Bitpoint cryptocurrency exchange https://t.co/zbdqXgFCIO
— The Japan Times (@japantimes) July 12, 2019
More details have emerged about the Bitpoint hack
The Japanese cryptocurrency exchange has revealed that it lost additional digital currencies worth 250 million yen ($2.3 million) at exchanges outside of Japan, as reported by Japanese daily newspaper The Mainichi. These overseas exchanges reportedly used Bitpoint’s trading system.
Customers’ money lost by Bitpoint reportedly accounted for 13 percent of the total digital assets the cryptocurrency exchange held.
Hackers seem to have found an easy way into Bitpoint’s systems as the cryptocurrency exchange’s hot wallet – containing bitcoin, bitcoin cash, litecoin, ripple, and Ethereum – could have suffered from poor security measures. This is because the Japanese Financial Services Agency (FSA) had pulled up Bitpoint last year on grounds of poor internal controls, telling it to shore up measures to protect its users.
The cryptocurrency exchange has failed on this front, but it is looking to save face by offering to compensate users for their losses.
The cryptocurrency exchange is trying to win back confidence, but will that be enough?
Bitpoint Japan President Genki Oda has refused to step down from his role in the aftermath of the hack.