Hackers on the rampage again, 59M $ Stolen

[Eraldo Coil]

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

There's something wrong for Tech Bureau Inc.under a regulated environment by Financial Service Agency- Japans foremost regulatory agency to be hacked for that big amount. There's must be an inside job in the system that they easily penetrate it and stole big amount. These people really don't know how to become rich in a good way. That amount is too big for the exchange market pay their costumer and i hope this will never happen again.

[tee-rex]

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.

But can they really? I don't know the premiums but if this kind of insurance is actually possible, they should be pretty steep for a regular exchange, given the "free" nature of bitcoin. There are a helluva lot of exchanges out there, and obtaining insurance may instantly render them uncompetitive. As far as I know only Coinbase has some insurance (correct me if I'm wrong on this) but exchanges like Bitfinex haven't.

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.

For us, the end users, it won't make any difference in the end. Anyway, I've seen plenty of exchanges hacked, and no one got caught, be it an inside job or otherwise.

[CryptoGosu]

There is nothing surprising in this. Many exchanges are poorly protected and hackers use this. I think in the future this can happen with many exchanges. I think it's bad.

[Choyor]

This is news that is not good for the crypto world, and we as Bitcoin users must be more aware of it. In this case Exchange needs to take security measures for its members to avoid losing more.

[fuer44]

I think the security of crypto wallets is guaranteed. but instead the big exchanger stolen from hackers. if this continues, crypto market conditions will worsen.

[Reid]

True and I hope we have learned from the recent hacks that had happened with exchanges. Never, ever leave anything huge in an exchange. Just the exact amount for trading will be good. Profits should always go back to a cold storage.

Since they are being regulated by their government I dont think this is one of those inside jobs that had happened with other exchange.
A little movement might happen after a week or two, the market doesnt react that instant.

[tee-rex]

True and I hope we have learned from the recent hacks that had happened with exchanges. Never, ever leave anything huge in an exchange. Just the exact amount for trading will be good. Profits should always go back to a cold storage.

If you are a big-time trader, you have to keep your funds on an exchange. If you keep only "what you can afford to lose", you will earn dust. It is possible to minimize your risk exposure by using margin trading, where you hold only amounts sufficient to keep up with the margin requirements and add more when the price moves against you and consequently withdraw the excessive amounts immediately if the price moves in your direction. But apart from the risk you are looking to minimize and which is still there, at the same time you expose yourself to the risk of an abrupt price move when your position will be liquidated by the exchange. Besides, you will also have to pay interest on borrowed coins.

[NeuroticFish]

For us, the end users, it won't make any difference in the end. Anyway, I've seen plenty of exchanges hacked, and no one got caught, be it an inside job or otherwise.

I don't agree. There's a big difference. It doesn't matter if the hackers are caught. What it does matter is that your funds are restored in a reasonable time.
And this is important for the exchange too. Bitfinex gave the money back to the users, hence it's still in business. For example Mintpal didn't refund. Do you know or remember Mintpal?

[usekevin]

This is sad news for that person. All the people should aware of hacking issue and make some security setup with this.
Hacking is happening in the regular intervals.This made the new investors to get some fear.The new investors must aware of hacking issue of cryptocurrency and make some security setup to his wallet to avoid hacking.

[tee-rex]

For us, the end users, it won't make any difference in the end. Anyway, I've seen plenty of exchanges hacked, and no one got caught, be it an inside job or otherwise.

I don't agree. There's a big difference. It doesn't matter if the hackers are caught. What it does matter is that your funds are restored in a reasonable time.
And this is important for the exchange too. Bitfinex gave the money back to the users, hence it's still in business. For example Mintpal didn't refund. Do you know or remember Mintpal?

I haven't heard much of them as I hadn't been their client. I was and am a client of Bitfinex, even though I withdrew my funds a few months before the hack, which happened in early August 2016, less than a month after the halving. In this way, I wasn't affected by the hack. If an exchange reimburses the stolen money, they are good and all that, but it doesn't change anything for us with respect to whether it was an inside job or an external hack. I suspect what you say is called "non sequitur". If our money is stolen it doesn't matter who did that. Returning the money or reimbursing the losses is another matter.

And while we are at it, there is a dude with a nickname TradeFortress who stole (or was stolen from) thousands of bitcoins belonging to lots of users. And he is still active here, at least was last time I checked, promising to return the money.

[jpnl0008]

This will bring alot of negativity and also make investors have a feeling of their investment not having enough security this willscare them away and its bad for the crypto business i just pray that the perpetrators of this act can be apprehended

[gokudera]

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

I did not know how they can easily get what they want because worker needed only to keep the pricate information that they have so that they will not be scam or hacked.

[gamechangers]

I am already tired of these hacking stories. They are out to bring down cryptocurrency. I am equally surprised that these big exchanges are falling victim of hacking from time to time. Don't they update their security?  They make good money from fees so I wonder why they can't fortify their security from time to time.

[bitcoins94]

Hacking cryptos is a very common thing. Luckily I have the only coin in the market that cannot be hacked. 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.

[cizatext]

I came across this news on my news feed some days ago but I never pay much attention to it, this is another sad news but hoping that the market will not react to this negatively for long. This why we are always advice not to leave huge deposits on exchange as they are most times the target of hacker's hope we all lean from this and the customers involved should be duly compensated with time.

[Gozmoc]

Every crypto user is prone to attack by hackers. one just need to protect his wallets as much as possible.

[Cryptrx]

Such occurance has been happening over the years and it's shameful to still hear about it happening today. Exchanges should employ multiple level signature to eliminate such occurance and the question of refunding those affected should be up for debate, the exchange has to do just that.

[mutrang23]

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

Exchanges at a time when there are still many security breaches, we need to have security regulators to help traders get protected from hackers. The development of Crypto made the exchange become a piece of cake that many people pay attention to, and everyone wants to get this piece of cake.

[gensol]

It's nice knowing we're fully and gradually moving past the zone of the market being affected by hack news. Exchange should improve on their security base or better still add another layer to their security measures. Measures like cold wallet storage that way hacks will be minimized.

[wxa7115]

I saw this going through my Reddit early news. I don't think this will have any negative impact on the market.
I have always wonder the security level of Cryptocurrency exchanges. Although am not a Cyber-security expert, but have once heard of something called "multiple signature" been required for withdrawal.  Such fear of exchanges been hacked is a course for concern for someone wanting to invest big in the market. My take is that: for now, use well trusted exchanges that have zero tolerance for security breaches, and try not to leave too much fund in an exchange. I hope customers get compensated since it's a management lapses. 

A hack of that size is not going to have any kind of effect in the markets, however it leaves a very bad impression to anyone that is looking to invest in cryptocurrencies for the first time and in many people like us that have been in the market for a very long time, in a way I understand that it is impossible to avoid being hacked because hackers have all the time of the world to try to find any kind of vulnerability in the system that exchanges use to protect the coins of their clients.

But at the same time if the exchanges do not find a way to limit the damages caused by hackers it is likely that they are going to slowly lose the confidence of the people and if they do not have the confidence of the people then it's very likely that they will be eventually replaced by decentralized versions of themselves.