Japanese Crypto Exchange Zaif Partners with Fisco to Compensate Users after $60M Hack

| Updated
by Julia Sakovich · 3 min read
Japanese Crypto Exchange Zaif Partners with Fisco to Compensate Users after $60M Hack
Photo: Zaif

The Japanese crypto exchange Zaif has disclosed the details of its plan to compensate users after a hack that hit the platform last month.

Zaif is a licensed cryptocurrency exchange operated by Tech Bereau Inc. Exchange’s major hack that happened last month was widely covered by media, and as it was reported by CoinSpeaker, the hack resulted in $60 million lost and affected a great number of users. about this situation as well.

The event happened on September 14. As soon as the exchange noticed an unusual outflow of funds, it immediately suspended its deposit and withdrawal services. Nevertheless, quite an impressive amount of $60 million worth of cryptocurrencies, including 6,000 Bitcoin, was stolen. Other lost digital assets included Bitcoin cash and the Monacoin cryptocurrencies.

A little bit less than a month has passed since the hack and Tech Bureau has announced the latest update on the refund plan. As it has been revealed, the exchange’s operator signed an agreement with a Japanese publicly listed investment firm called Fisco.

Earlier, it was said that Fisco Digital Asset Group has expressed its desire to invest a large amount of funds into the company for refund purpose. It was planned that Fisco would provide “financial support of 5 billion yen, enter a capital alliance enabling acquisition of a majority of the Company’s shares and allow for a majority of directors and the dispatch of an auditor.”

But as it has turned out, now the proposed terms have been changed and the companies have taken a decision to focus on a business transfer method. Under the agreement, Tech Bereau will transfer the business of Zaif to Fisco Cryptocurrency Exchange. According to the announcement, this move will help to prevent any potential risks for both: users of the platform and Fisco itself.

According to the information that has been disclosed by the current moment, it is expected that Tech Bureau will organize its general meeting for shareholders on November 19, and 3 days later, on November 22, the business will be transferred to Fisco.

In the framework of the business transfer deal, Fisco will resume the compensation process. As Fisco has been operating a Bitcoin exchange since August 2016, the company will use its own Bitcoin and Bitcoin cash reserves to compensate the exchange’s clients who lost their crypto assets in the hack.

As for Monacoin, the company will repay this type of crypto assets in the form of Japanese Yen at a rate of $1.28 per unit. It is reported that lost assets will be compensated 60 percent in crypto and 40 percent in fiat currency.

Moreover, on October 10, all Monacoin transactions on the Zaif platform were completely ceased, while Bitcoin and Bitcoin Cash transactions are said to be conducted “as normal”.

It has also become known that Tech Bureau is planning to dismiss its crypto exchange business and will request the Japanese Financial Services Agency to abolish the license.

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