Latest Crypto Hack is $32 Million Tokyo Exchange Called Remixpoint
2019 has not been kind to cryptocurrency exchanges. CoinTelegraph even highlights this in a round-up of sorts.
A cryptocurrency exchange in Tokyo has halted services after it lost $32m (£25m) in the latest apparent hack on volatile virtual monies. Can we call it that? Virtual monies, it’s a very European way of saying it.
It’s usually mostly Bitcoin and yes, it’s quite hackable, let me assure you.
The company, based in Tokyo, is called Remixpoint and it runs an exchange called BITPoint. The company also has used car, travel and energy businesses. The company apologized for the hack on Friday (July 12), saying that the losses were confirmed a day before.
Digital money is all fine and well, that is, if it were actually secure and not prone to hacks, fraud and theft.
You know it’s mainstream news when even Bloomberg (paywall) covers it. Still, $32 million is on the high side.
As the reputable site pymnts (who have covered Libra really well btw) reports:
- The complete picture of the hack and theft is under investigation, and the theft included Bitcoin, Ethereum, Ripple and other well known digital currencies.
- Two-thirds of the losses affected customers of the exchange, the company said, and the rest belonged to the company. Transactions have been stopped in the meantime. That’s just a gigantic B2C loss in trust right there!
- Japan, which set up a licensing system to oversee crypto use, has been fairly open to digital currencies from the beginning, even though there have been some newsworthy digital thefts in the past. The traditional banking system in the country has been more skeptical, however.
- Bitcoin has a stronger presence in Japan and even retails there more than most other countries.
As reported elsewhere, Remixpoint said the lost money was in what is called the “hot wallet.” Money in the “cold wallet,” which has tighter security, was safe.
What’s new in crypto havens (heavens?), the devil(s) of cybersecurity still can hack them. That’s not good for trust in these cryptocurrencies as stores of value, not to mention actual digital currencies.
The apparent hack emerged after an error appeared in the firm’s outgoing funds transfer system on the night of July 11th, 2019.
According to the odd reporting of The Guardian, this is the latest hack involving cryptocurrencies, which have become synonymous with vast fluctuations in value, being used in criminality and frequent theft through hacks. Very bleak, guys!
Bitcoin is also synonymous with the ultra wealthy storing value that will be even more profitable. Yay, to be in the 1% in times like these.
Japan is still essentially a trail blazer though. Bitcoin has been a legal form of payment in Japan since April 2017.
Follow a Futurist, sign up to receive blog-rolls about breaking news in Business and Technology & related Op-Eds.