$32 million wiped out of a Japanese cryptocurrency exchange

12 Jul, 2019
by Manshi Soneji Mamtora
News
$32 million wiped out of a Japanese cryptocurrency exchange

Japanese cryptocurrency exchange, Bitpoint halted its trading activity after losing $32 million in a hack involving XRP and other cryptocurrencies.

According to a report by Bloomberg, Bitpoint exchange reported a theft of a total amount of 3.5 billion yen, out of which 2.5 billion yen were stolen from customer accounts and rest from the exchange account.

Bitpoint is owned by Remixpoint Inc. and the hack led to drop in Remixpoint Inc. share price of close to 19%. 

The funds were stolen from hot wallet that involved five cryptocurrencies including Bitcoin and Bitcoin Cash, while no discovery has been made of funds stolen from any cold wallets. 

Japan's Financial Services Agency or FSA had ordered Bitpoint on improving its internal controls following the 2018 hack of Coincheck. According to the Reuters report, the FSA wanted to ensure that exchanges in the country maximize their use of cold wallets to limit the potential damage from hacks. 

Remixpoint was an investor with Gaia, which operates a virtual currency follow-trade service 'Maneko'. Follow-trade is a service that allows you to imitate the same order as a high winning trader instead of trading yourself.

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