Japanese cryptocurrency exchange Zaif that suffered a hack earlier in September has entered into an agreement with FISCO to compensate customers.
Affected Customers to Be Compensated
There is good news for those customers of Zaif whose funds were stolen during a security breach earlier in September. Funds worth 6.7 billion yen (approximately $59.7 million) were stolen during the hacking incident which happened earlier in September. Zaif is a Japanese cryptocurrency exchange run by Tech Bureau Corp., an Osaka-based start-up.
To compensate customers whose funds were stolen, the company has entered into an agreement with FISCO, Japanese financial services, and investment support group. As per the agreement, FISCO will provide, “financial support of Yen 5 billion, enter a capital alliance enabling acquisition of a majority of the Company’s shares and allow for a majority of directors and the dispatch of an auditor.”
According to the agreement, FISCO will take over the operations of the exchange and compensate the impacted customers. The platform will be renamed as FISCO cryptocurrency exchange.
For customers that owned Monacoin, a refund will be made in Japanese Yen. The amount will be based on the fiat value of the cryptocurrency that was held when stolen. The impacted clients will be paid at a rate of Yen 144.548 per Monacoin.
Services on the Platform
Transactions of Monacoin have been halted with effect from 5 pm on October 10th. For Bitcoin and Bitcoin Cash services have resumed as usual from October 10. However, deposits and withdrawals will continue only after the transfer of control, which is scheduled for November 22nd. This will be followed by the General Meeting of shareholders, which is scheduled for November 19th.
Customers would be informed through further public announcements regarding the dates for resumption of Monacoin transactions. The timings for withdrawals of Monacoin (by investors holding and also for those compensated) will also be informed.
Many Japanese exchanges including Zaif have been the victims of security breaches this year. As reported earlier this month the exchanges have planned to come up with tighter measures to ensure that customers’ assets are better managed. Going ahead most exchanges will follow a capping on the number of customer assets to be maintained online.
What is your opinion on this agreement between Zaif and FISCO? Let us know in the comments below.
Images courtesy of AdobeStock and ShutterStock