Zaif Hit With Third Improvement Order, Revises Hack Estimate

Japan’s top financial regulator has issued hacked crypto exchange Zaif a third business improvement order. The exchange has revised its theft estimate, after discovering that 42,327 BCH were also stolen in addition to 5,966 BTC. Zaif has also signed agreements with two companies for their help with repaying customers and improving its security system.

Japan’s Financial Services Agency (FSA) issued a third business improvement order to Tech Bureau Inc. on Tuesday, Sept. 25. Tech Bureau is the operator of crypto exchange Zaif which was hacked on Sept. 14 but the breach was not detected until Sept. 17. Zaif is one of Japan’s 16 regulated crypto exchanges.

In its order, the FSA has given the firm until Sept. 27 to submit written reports to explain the situation. Three key areas must be addressed. The first concerns the “Determination of the facts and causes of the leakage…and [the] formulation and execution of measures to prevent recurrence.” The second concerns the “Prevention of customer damage increasing.” The third is about the firm’s “Response to customer damage,” including how it plans to compensate customers.

The order also requires the firm to “review and implement concrete and effective improvement plans” relating to security breaches as outlined in the previous two business improvement orders. The first order was issued on March 8 and the second on June 22.

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