Hackers on the rampage again, 59M $ Stolen

[akashark]

Si, this is the reason for the market down today! Such a bad luck we are. When the market just started growing, that time this bad news spoils everything once again! And, You are right, this is the main reason to not hold our coins in exchanges for a long time.

[gentlemand]

Si, this is the reason for the market down today! Such a bad luck we are. When the market just started growing, that time this bad news spoils everything once again!

Nope. No one else other than Zaif gives a shit. It's a piddling amount of money in the great scheme of things and the Japanese market rarely commands attention elsewhere anyway.

[bitcrypt_09]

I am sorry to read this keeps happening. If you want to avoid this, I strongly suggest you invest on AML BitCoin. AML BitCoin rests on a privately regulated public blockchain that facilitates AML-KYC compliance and identifies criminals associated with illicit transactions while maintaining and strengthening the privacy protections for legitimate users.

[kickdapa]

This types of news break my heart! How many times we have to see exchanges hack accident in a year! I couldn't bear it anymore.  In this year, more than 5 times exchanges got hacked. Bithumb hacked for two times, Bancor, and now this one, and yobit io!  And some others exchange! More than 200 Million USD hacked from several exchanges in this year! How can crypto market grow? Are we not safe enough then?

[gesdan]

its show us that the exchanger is not safe than the blockchain system, so if we have much of cryptocurrencies, or bitcoin i think it will more safe if we save it in our blockchain wallet, like the hardware wallet or online wallet

[doodle07]

These news and situation destroys the image of bitcoin to the public because of the hackers and scammers that have no conscience. Here's an another reason for the potential investors to not deal with crypto. Let's just be active and cooperate to prevent these kind of incident for each and everyone of us savings secured.

[aizen10]

Expectedly, after this hacked happens, the market will surly affected by this, because hackers ganna dump all those coins he hacked to collect money for real, this scenario can be a another warning to us to not store much expensive coins in exchange site, although it has a good security at the time you use, but after a days that security may be outdated or weak for the hackers, so hackers can do what ever he wants too.

[adrianto1995]

Prepare yourself
DUMP is coming 

That's why I don't want to store my asset too long on exchanger, we don't know how long this exchanger still safe. Also, the exchanger owner not guarantee will refund our asset if got stolen by hackers...

[tee-rex]

Expectedly, after this hacked happens, the market will surly affected by this, because hackers ganna dump all those coins he hacked to collect money for real, this scenario can be a another warning to us to not store much expensive coins in exchange site, although it has a good security at the time you use, but after a days that security may be outdated or weak for the hackers, so hackers can do what ever he wants too.

Hackers typically don't dump the stolen coins immediately as the coins or proceeds can be easily locked by an exchange once the news spreads out. And the price falls not so much because of coins sold as on the news of the coins having been stolen. It is the market reaction to the hack. Anyway, shrewd hackers sell coins on margin even before the actual hack attempt as this allows them to multiply the spoil and reap profits before taking any action.

I recall two or three days before the Bitfinex hack someone had been massively shorting bitcoin on the order of millions of dollars. In that way the price went down prior the hack due to massive short positions. And after the hack bitcoin expectedly crashed which allowed those in the know (likely the hackers themselves) to monetize the hack and book insane profits apart from the loot as such.

[Sevarchik]

Sad news one more price regulator in the shadow.
Of cource if it not the same person who hack all other exchanges.

[Haunebu]

Prepare yourself
DUMP is coming 

That's why I don't want to store my asset too long on exchanger, we don't know how long this exchanger still safe. Also, the exchanger owner not guarantee will refund our asset if got stolen by hackers...

Every sensible person knows that storing our funds on an exchange is easily one of the dumbest moves ever and it is way safer to secure our funds through a hardware wallet like Trezor or through desktop wallets in this case.

Exchanges can always get hacked no matter how sophisticated their security is at the end of the day since hackers will always find a way. New and upcoming exchanges are especially prone to such attacks which is why they need to be extra careful.

[tee-rex]

Prepare yourself
DUMP is coming 

That's why I don't want to store my asset too long on exchanger, we don't know how long this exchanger still safe. Also, the exchanger owner not guarantee will refund our asset if got stolen by hackers...

Every sensible person knows that storing our funds on an exchange is easily one of the dumbest moves ever and it is way safer to secure our funds through a hardware wallet like Trezor or through desktop wallets in this case.

Coins can be stolen from hardware wallets too. If you can restore the private key in case such a wallet malfunctions, it pretty much means anyone else can potentially do that too. It is just a matter of time until a major hack occurs. Money from desktop wallets is stolen every other day, you just don't hear about that just like you don't hear about every car wreck in the world, though thousands people get killed in car accidents monthly. If you want to be 100% safe, you should use a paper wallet.

[NeuroticFish]

Insurance comes with a price. And in case of crypto, as I'm strongly inclined to think, it comes with a double price.

Of course it does, also the insurance company has to be pretty open and tech oriented. And it may even have certain safety requirements.
But a proper exchange should really afford that.
0.2% of so much crypto traded each and every day... it's a lot.

Regardless, if it was an inside job, then the "hackers" would be twice as motivated, first by coins they allegedly stole and then by the insurance indemnity they would be expected to receive from the insurance agency. Though, honestly, I can't imagine how you are going to insure your crypto reserves and what premiums you are expected to pay to an insurance company for the insurance provided as it is next to impossible to distinguish between fraud and "legitimate" hack in case of coins "missing".

As I wrote, I don't expect any insurance company have the skills to deal with crypto. Extremely few actually do (I may have read of 1 or 2...).
I really think that a properly made exchange can find out if there was a hack or inside job. Only the one with lousy security cannot find the difference imho.

[Delinquency]

News like these make me think about keep bitcoins in exchanges. Big or small any exchanges are in danger of hacking by some crafty people. This case makes stay away people from bitcoin. I hope something like that will never happen again.

[fosco333]

Japanese Exchange Zaif was reported to have suffered some security breach that resulted in about 59.7 M$ being stolen from the exchange. the hackers carted away with Bitcoin (5966), bitcoin cash and some Monacoin. It is not clear yet when or if customers will be fully reimbursed for the losses.
Zaif is operated by Tech Bureau Inc.under a regulated environment by Financial Service Agency- Japans foremost regulatory agency.
It is not likely that the market will react much to the hack ( or maybe it has already as we saw bitcoin slide to 6100 range and back up to 6400$ within an hour or this was caused by the CBOE future closure).
This brings to bear once again the need to never leave some substantial amount of exchanges.

https://cointelegraph.com/news/japanese-cryptocurrency-exchange-hacked-59-million-in-losses-reported
https://jp.reuters.com/article/zaif-tech-bureau-inspection-idJPKCN1M001Y

No, it won't impacting the market with that amount of btc. In the first place, the hackers are not smart if they immediately dump the whole btc because it means they will get cheap. This kind of event makes me wonder if storing our coins in the exchange wallet is safe or not.

[Dudeperfect]

there is no solution for it other than constantly improving the security measures

An exchange has to use cold storage and maybe multisig too. And for the hot coins, they have to use...insurance.

Of course, the security measures are important, but also the hardware is advancing and something secure now may not be so secure in a year. Hackers are advancing too.
Plus don't forget that bugs do happen. That's why among proper security, I think that exchanges should really use insurance.

Insurance comes with a price. And in case of crypto, as I'm strongly inclined to think, it comes with a double price. Regardless, if it was an inside job, then the "hackers" would be twice as motivated, first by coins they allegedly stole and then by the insurance indemnity they would be expected to receive from the insurance agency. Though, honestly, I can't imagine how you are going to insure your crypto reserves and what premiums you are expected to pay to an insurance company for the insurance provided as it is next to impossible to distinguish between fraud and "legitimate" hack in case of coins "missing".

Crypto is based on the blockchain technology which relies on the principle of decentralization and since there is a decentralization of power, there are some responsibilities too and the prime responsibility is associated with maintenance of security measures while handling the crypto funds. Not every exchange has the same approach towards security measures and hence the responsibility comes to square one that is on the user.

[Kakmakr]

Bitcoin anonymity is for hackers, scammers and criminals, terrorists also. They will run away after the crime.

Yes, until they use the wrong mixer service or until one of these services reveals their identity. The governments and counter security agencies are not sitting on their hands, they employ highly skilled hackers too, to stop these people.

This is why I find it stupid that hackers would want to hack these exchanges, not knowing what services they can trust and what not. Just imagine what will happen when these hackers find out that all tx's can be traced. <somewhere in the future> 

[Moiyah]

I remembered some hacking issues before in myetherwallet, this has something to do affecting the price in the market. And that resembles this issue, it may somehow affect the movement of the price but just a little effect on the market.

I think Japanese exchange shall demodel the security of their system and shall think of the other way not to repeat this kind of hack.

[xWolfx]

I think the overall level of education in Bitcoin is rising. Seems like finally, it is getting through their rather thick skulls of newbies that the failure of exchanges trying to keep coins safe isn't relevant to bitcoin's security. But still in 2018 there's tons of people that when they read these headlines, think that exchange hack = "bitcoin hack". There's still a lot of work to do when it comes to that, but slowly we'll get there. And as education level rises, these news will have less of an impact as they would understand there's no reason to play along with the panic selling of these news anymore.

Well this is totally truth. People tend to generalize and in this case it's really bad to do so.

It's truth that like you say those news will have less impact, it's like news of a bank being stolen. What will happen? The only ones who should be worried about their money should be the ones who had money inside the place, not everybody who holds the same currency - Which is of course have no logical reason behind it.

It's a shame, since there is people who try really hard to educate themselves to be able to trade with good or decent benefits. The security in exchanges needs to severely improve or the coins of everybody should have some kind of protection.

[befriendmywater]

Monacoin is really a big hole. In this market, there is always hacker attacks and what makes me feel normal. I only worry about the $ 59 million. I hope the hackers will not waste it and make the market red.