[2018-11-22] Zaif Exchange Handover Complete as Previous Owner Vows to Dissolve

[Lmaooo]

Zaif Exchange Handover Complete as Previous Owner Vows to Dissolve Company

Tech Bureau, the company that formerly operated hacked Japanese cryptocurrency exchange Zaif, has completed its handover to buyer Fisco Cryptocurrency Exchange (FCCE), Cointelegraph Japan reported Nov. 22.

FCCE, which agreed to take over proceedings in October, will now assume responsibility for compensating users who lost money in the hack, which occurred Sept. 20 and involved funds worth around $60 million at the time.

According to a press release from FCCE, compensation proceedings should begin before the end of this month.

No timeframe has yet been set for deposits and withdrawals at Zaif to resume.

Confirming the move, Tech Bureau said it planned to dissolve its entity and retire from the cryptocurrency industry.

“We will abolish the registration of our virtual currency exchange and plan to dissolve,” the company wrote in a statement.

The hack occurred as both authorities and Japan’s new self-regulatory crypto group are beefing up application requirements for the country’s new cryptocurrency exchange licensing scheme.

In January, fellow exchange Coincheck lost $534 million in one of the biggest exchange hacks in history, subsequently seeing a buyout and turnaround by online broker Monex.

Last week, Coincheck finally began resuming deposits and withdrawals of NEM (XEM), one of the coins affected by the hack.

CT | https://cointelegraph.com/news/japan-zaif-exchange-handover-complete-as-previous-owner-vows-to-dissolve-company

[shamc]

These hacks are one of the reasons why people are hesitant to join in crypto. Losing half a billion dollars in inexcusable, heads need to roll for this incompetence

[gentlemand]

Hmm. My pet alt, NEM, has its development funded by Tech Bureau at present. Hope that doesn't mean they're vacating completely. Presumably it's just that side of the business.

Since this was one of the original 'regulated' exchanges it's a tad strange this happened. I though the Japanese authorities were quite active about checking how the exchanges they sanction operate.

[Harlot]

They will need to undergo a major rebranding after the transition happens, Zaif exchange already has a very bad reputation when it was hacked. The company maybe just have been bought in order to retain the key operations of a crypto exchange but I doubt they will keep the name, they might change it later on after they realize that the bad reputation is affecting their business.  But I am surprised that Japan has allowed the sale to happen since they are strict on what exchanges operate in their country or did I miss something and they will still have some sort of new screening to undergo too?

[Kemarit]

They will need to undergo a major rebranding after the transition happens, Zaif exchange already has a very bad reputation when it was hacked. The company maybe just have been bought in order to retain the key operations of a crypto exchange but I doubt they will keep the name, they might change it later on after they realize that the bad reputation is affecting their business.  But I am surprised that Japan has allowed the sale to happen since they are strict on what exchanges operate in their country or did I miss something and they will still have some sort of new screening to undergo too?

Perhaps Japanese regulators have no choice but to allow the buy out because they have to refund its customers. But what surprises me though is that why the full take over? I thought that at least they will at least retain 49.5%, but it looks like they have transferred everything and will likely dissolves its business and cancel their licenses.