Business & Finance

Bitpoint Reveals Stolen Crypto Assets – Promises to Compensate Users

The Japanese cryptocurrency exchange, Bitpoint, that lost crypto assets worth $32 million in a hack last week, has published the breakdown of all the crypto assets that were compromised because of the hack.

Now the crypto exchange plans to move all crypto holdings into cold storage for security measures, as the cold wallets remained safe from the deadly breach. However, the exchange is continuously monitoring the situation and is working on implementing comprehensive security measures in order to track the lost funds. In its report today, Bitpoint revealed that it plans to compensate all the effected customers. However, the compensation will be in cryptocurrencies only, rather than in their equivalent fiat value.

According to the post, 1,225 bitcoins (BTC) worth 15.3 billion yen have been stolen, of which 1.28 billion yen belonged to the exchange’s customers and the remaining 250 million to the firm itself. 1,985 Bitcoin Cash (BCH) were also stolen, which is equivalent to 70 million yen. 40 million yen out of the 70 mil were of Bitpoint’s customers whereas 0.2 billion yen belonged to the firm.

This year has been extremely tough on cryptocurrency exchanges across the globe, as most them witnessed alarming security breaches and hacks. The latest victim was Bitpoint which lost a hefty amount of crypto assets. The hacks targeted the funds in Bitpoint’s hot wallets in which it stores a total of five cryptocurrencies, bitcoin, bitcoin cash, ethereum, litecoin and ripple. In a follow up by the crypto exchange, the amount of the stolen crypto assets has been revealed.

READ ALSO: China Hunting a Bitcoin Mining Gang – $3.2 Million Worth of Electricity Stolen

Moreover, 11,169 Ether (ETH) went missing, which are worth 330 million yen and 240 million yen from that amount belonged to the customers while the firm owned the remaining 0.8 billion. 5,108 Litecoin (LTC), which are equal to 0.5 billion yen, were also taken out of the platform’s hot wallets. 40 million yen of these were owned by the customers. Lastly, 28,106,323 XRP were also among the stolen funds, worth 10.02 billion yen, of which 2.6 billion yen belonged to the customers and 960 million yen to the firm.

To put it simply, out of the total 3.02 billion yen that were overall stolen in cryptocurrencies, 2.6 billion yen belonged to the customers of Bitpoint Japan, while only 960 million were company assets. Deducing from the published list, it seems that XRP holders bore a heavy loss as it accounts for the highest share of the total losses incurred by the exchange, which is over 10 billion yen.

READ ALSO: $5 Million Crypto Loss: Even the Most Advanced Crypto Exchange Suffered Hack

Only a day ago, the exchange was rejoicing when it discovered over 250 million yen ($2.3 million) of the stolen cryptocurrency. The Tokyo-based crypto exchange claims that the hack was discovered at oversees exchanges that leverage the trading system provided by Bitpoint Japan.

The recent discovery came has a sigh of relief for the crypto exchange as it brought down the amount of missing crypto assets from 3.5 billion yen ($32 million) to 3.02 billion yen.

As per the firm’s reports, it suffered a security breach on Friday last week. In response, the team took the decision to suspend all their services, including trading, deposits and withdrawal of all crypto assets. The exchange maintains that the breach occurred due to unauthorized access to the private keys of its hot wallets.

Furthermore, the document also revealed that Bitpoint is cooperating with the Japan Virtual Currency Exchange Association (JVCEA), which is a self-regulatory crypto exchange association with an aim to help establish industry-wide investor protection standards.

READ ALSO: Crypto Fraud: Brothers Put Behind Bars for the 2016 Exchange Hack

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Abeer Anwaar

Abeer holds a Bachelors degree in Media studies and covers blockchain startups for BlockPublisher. An optimist, excels in the art of the written word and swears by the joy of all things sweet. Contact the editor at editor.startups@blockpublisher.com

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