Based on a recent report, Japan digital currency exchange BITpoint has revealed that about 50,000 of its customers who lost money when the exchange was recently hacked will be paid back in virtual currency using a 1:1 ratio.
According to the exchange, the estimate of losses incurred during the security breach is around 3.02 billion yen which is valued at $28 million at least $4.6 million less than the amount which was originally thought to be lost with several thousands of the exchange’s clients reportedly losing 2.06 billion yen ($20 million), and the firm has revealed that it has prepared the above-mentioned amount in digital currency for reimbursement immediately it restarts its services which came to a stop after the hack.
The president of BITpoint, Genki Oda apologised for the occurrence stating that the exchange is investigating the cause of the security breach but he didn’t offer any further details.
Also, a press release by the firm confirmed that the cryptocurrencies stolen during the attack include 5,108 litecoin, 11,169 ether, 1,225 bitcoin, and 1,985 bitcoin cash.
Following the hack, Bitpoint halted all services including trading, deposit and withdrawal of all crypto assets on Friday morning after it noticed irregular withdrawal from its hot wallet on Thursday.
Furthermore, when BITpoint’s Director Kimio Mikazuki was questioned whether the reimbursement of victims with crypto rather than cash might cause the firm to run at a loss, he refused to give any response because it is a legal matter.
BIT Point’s parent company Remixpoint revealed that the breach occurred due to unauthorized access to the private keys of its hot wallet after which the firm shed 19% of its shares once the news broke, therefore, became untraded in Tokyo as the report “a glut of sell orders.”
Meanwhile, Koji Higashi, a Japanese market analyst and the founder of Koinup stated that the even though the FSA carried an investigation, it didn’t seem to ensure that its subjects have stronger protection in place.