Hackers Steal USD 32M in Crypto from BITpoint Japan

Exchange Hack

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Linas Kmieliauskas

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Linas Kmieliauskas

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June 26, 2023 06:53 EDT

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On July 11, hackers stole JPY 3.5 billion (USD 32 million) from the Japanese cryptocurrency exchange BITpoint, its parent company Remixpoint confirmed today, adding that victims of the hack will be compensated.

The exchange stopped all its services earlier today and promised to announce more details later.

JPY 2.5 billion belong to the customers of the exchange, while the rest were stolen directly from the BITpoint Japan.

BITpoint Japan Inc. is a Tokyo-based exchange, established in March 2016. Its major shareholder is the mentioned Remix Point Co., Ltd, a Japan-based company engaged, besides their crypto exchange, in software development, energy-related business, and automotive business. The exchange’s website cites the capital of JPY 4,430 billion (USD 41 million). Its subsidiaries are BITpoint Hong Kong, BITPoint Korea, BITPoint Malaysia, BITpoint Panama, BITpoint Apec, BITpoint Taiwan, and Hangzhou Weitai Net Technology Co., Ltd.

BITpoint Malaysia, however, has stopped providing services, as the notice on the website states, since the Security Commission Malaysia registered three Recognized Market Operators (RMOs) which are allowed to establish and operate digital asset exchanges in the country, while BITpoint found itself on the list of the digital asset exchanges not permitted to continue operating effective June 1, 2019.

BITpoint’s site showcases no trading and account management fees, as well as its security measures, which makes this hack even more surprising. They also got an “A” from the information security rating company IS Rating, Inc. in October 2018. The security measures include segregation management, SSL support, two-step certification, customer notification, and multisig compatibility.

As many experts have stressed previously, crypto users should keep their private keys to their coins offline, e.g. in hardware wallets such as Ledger, Trezor, KeepKey and others.

In 2018, BITpoint was among other exchanges that were hit with business improvement orders by Japanese regulator the Financial Services Agency. Also, as reported, BITpoint has recently opened a branch in Peru.