Bitpoint Pledges To Reimburse Users In Crypto After Hack

Bitpoint Pledges To Reimburse Users In Crypto After Hack

Bitpoint Pledges To Reimburse Users In Crypto After Hack

Bitpoint, a Japanese exchange has published the breakdown of crypto assets stolen in the 3 billion yen ($27.8 million) hack of its platform this month.

A document published by Bitpoint’s parent firm Remix Point Inc. on July 16th said that five crypto assets in total were stolen by the attackers. The breakdown provided by the company goes thus:

  • 1,225 Bitcoin (BTC) worth 15.3 billion yen with1.28 billion yen belonging to customers and 250 million to the firm;
  • 1,985 Bitcoin Cash (BCH) worth 70 million yen with 40 million yen belonging to customers and 0.2 billion yen belonging to the firm.
  • 11,169 Ether (ETH) worth 330 million yen which has 240 million yen belonging to the customers and 0.8 billion belonging to the firm.
  • 5,108 Litecoin (LTC) which is 0.5 billion yen with 40 million yen belonging to the customers and 0.0 billion yen to the firm
  • 28,106,323 XRP — 10.02 billion yen, of which 2.6 billion yen belongs to the customers and 960 million yen to the firm.

From the 3.02 billion yen stolen in cryptocurrencies overall, 2.6 billion yen belonged to customers and 960 million yen were company assets. XRP has the highest share of total losses, with stolen XRP amounting to over 10 billion yen which is roughly a third of the lost funds.

Bitpoint has revealed plans to compensate customers in cryptocurrencies rather than in their equivalent fiat value.

Bitpoint reiterates its belief that the breach occurred due to unauthorized access to the private keys of its hot wallets, and that it now plans to move all holdings into cold storage.

Bitpoint confirms that no breach of its cold wallets has been detected and went on to state that it will continue to monitor the situation and is also suspending all services until more comprehensive security measures have been undertaken and the firm has completed its tracking of the stolen funds.

According to the document, Bitpoint is cooperating with the Japan Virtual Currency Exchange Association (JVCEA) — a self-regulatory crypto exchange association that formed in March 2018 to help establish industry-wide investor protection standards.

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