Tokyo based cryptocurrency exchange operator Bitpoint has suspended all its services following a loss of about 3.5 billion Japanese Yen in a system compromise that involved Ripple and other cryptos. The licensed crypto exchange platform has been hacked 32 million USD worth of crypto assets.
According to information reaching our desk, Bitpoint Japan Co. has halted all its services that involve depositing, trading and withdrawal of all virtual currencies earlier today after the management noted irregular withdrawals from its accounts on Thursday.
Although it’s not yet clear at the moment which types of assets were siphoned, the crypto exchange is said to have lost about 2.5 billion Yen (25 million USD) from customer accounts and 1 billion Yen (9.2 million USD) from the exchange’s deposit account.
While the exchange offers to trade for five virtual currencies: Ripple (XRP), Litecoin, Bitcoin, Ether, and Bitcoin Cash, it is not yet clear what crypto assets suffered what percentage of thuggery. Experts looking into the matter have come out to say the crypto exchange suffered the attack at around 10:39 pm on Thursday.
In an announcement to the public, Bitpoint’s mother company Remixpoint Inc. issued a statement saying the 23 million USD of the illegal withdrawals belonged to its customers.
The crypto company added,
“We want to assure our customers that we are working round the clock to ascertain the cause and the identity of the illegal withdrawals to minimize damages.”
The Japanese crypto exchange, Bitpoint, is registered on Tokyo’s Second Section Stock Exchange. At the moment, the exchange is working tirelessly to apologize and assure its customer of compensation for any damages that might have incurred.
Following the news of the hack, Remixpoint Inc. continues to suffer as the company’s share prices record a plummet of 18.6 percent.
The system compromise is not unique as it marks the latest incident in a string of similar cases the Japanese market has been experiencing at their crypto exchanges.
In 2018, Coincheck, another Japan-based exchange, halted all its withdrawal and deposit operations for crypto assets after it was compromised. The hack resulted in the loss of crypto assets worth 500 million USD at the time.
Similarly, in 2014, Japan-based MtGox cryptocurrency exchange was forced to shut down its operations after 850,000 BTC worth 500 million USD at the time went missing from its virtual wallets. At the time, MtGox handled close to 80 percent of all Bitcoin BTC transactions in the world.
The increasing crypto exchange hacking incidents are prompting Japan’s Financial Services Agency to play a more significant role in supervising cryptocurrency exchanges. Even after the involvement of the agency, critics remain skeptical towards the security of crypto exchanges.
Today’s Bitpoint system compromise records this year’s 6th system breach by hackers. According to research, the total amount of crypto assets that have been siphoned from crypto exchanges since inception stands at about 1.4 billion USD.
How can Crypto Exchanges Protect Customer Assets Against Hacks?
Communication between crypto exchanges is vital in fighting with this cumbersome vice that is increasing in frequency. Since hot wallets are vulnerable to system compromises, it is of the extreme importance crypto exchanges device a communication line between themselves to mitigate suspicious operations. By establishing a good communication line between themselves, crypto exchanges will be able to trace, freeze, and stop suspicious transactions that are on the move.
Since funds are usually transferred from one exchange to another during hacking, establishing excellent communication will be vital in fighting this vice. A working communication system will make it possible to suspend virtual vaults that receive hacking proceeds swiftly assisting in the recovery of funds.
For instance, in January 2018, four of the largest crypto exchanges in South Korea created a hotline between themselves to assist them in communicating, detecting, and freezing immediately suspicious transactions. The four crypto exchange are Upbit, Korbit, Coinone, and Bithumb.
Disclaimer: The presented information is subjected to market condition and may include the very own opinion of the author. Please do your ‘very own’ market research before making any investment in cryptocurrencies. Neither the writer nor the publication (TronWeekly.com) holds any responsibility for your financial loss.