Japanese Bitpoint Exchange Loses $32 Million of Cryptocurrency in Hack

Japanese exchange Bitpoint has fallen victim to a hack to the tune of $32 million worth (3.5 billion yen) of cryptocurrency. In a Japanese notice posted on its website, the exchange said it was suspending all activities as a result.

The hackers stole a variety of crypto assets, including XRP and bitcoin, from the firm’s hot wallets. More than 60 percent of the stolen funds belonged to the exchange’s customers, the post notes. Bitpoint was one of the exchanges ordered to improve internal controls following the catastrophic Coincheck hack of 2018. 

Customer protection measures have been the focus of Japanese regulators of late. Beyond compliance with anti-money-laundering requirements, regulators in Japan have also clamored for a change in how exchanges store cryptocurrency. Beginning in April 2020, Japanese exchanges have to keep users’ money separate from operating cash. Also, customer funds have to be kept in cold wallets. In cases where hot wallets are used, the exchange has to keep a corresponding quantity of the asset as backup.

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Source: Bitcoinmagazine