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BY CNA Team - September 26, 2018

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Tech Bureau under pressure to provide details on Zaif hack

Tech Bureau comes under criticism for being slow in providing details to US$62mil exchange hack
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Tech Bureau’s officials continue to drag their feet in providing clearer details on the Zaif cryptocurrency exchange hack that cost investors US$62mil.

According to Reuters, the Osaka-based crypto exchange operator has failed to provide adequate details on the hack nor explain the delay in reporting it.

Unauthorised outflow of funds was first noticed by the company on Sept 14 but it did not make an announcement until Sept 20. Server problems were detected on Sept 17 and confirmed the hack on Sept 18.

Japan’s financial regulator, the Financial Services Agency (FSA), has issued a third business improvement order asking the company to provide details on how the hack occurred and how investors will be compensated.

Tech Bureau was first served a business improvement order in March and then again in June.

“We have not received enough explanation on what exactly happened. What they told us is an employee’s personal computer was hacked,” a senior FSA official told the media on Sept 25.

The newswire says the official warned that further action could be taken against the company if needed.

“It is extremely regrettable that such an incident happened when (Tech Bureau) was given two business improvement orders,” the FSA official was quoted by Reuters as saying.

Reuters did not get a reply from company officials either by phone or by email, their preferred medium of answering media inquiries.

Japan has required cryptocurrency exchanges to be licensed since April 2017. There are to-date, 16 licensed exchanges, including Zaif.

The FSA says in an earlier report that more than 160 companies who want to operate exchanges are awaiting reviews but the regulator has not issued any licenses since last December.

Image courtesy of Tech Bureau website.

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