Categories: Bitcoin

Crypto Exchange Zaif Reveals Customer Compensation Plan after $60 Million Hack

After waiting for over three weeks for a compensation strategy, victims of the Zaif cryptocurrency exchange hacking can now sigh with relief as the owner of the Japanese exchange has put forward a plan.

Tech Bureau, which owns the Zaif cryptocurrency exchange, has announced that it will sell its entire stake to Fisco Digital Asset Group, a publicly listed Japanese firm which also operates a digital asset exchange. Consequently, the responsibility of compensating victims of the breach will fall on the new owner.

“In the official contract between the Fiscal virtual currency exchange corporation and our company, the contract specifies the former as the successor. Therefore, the contractual relationship between us and the customer will be transferred from our company to the Fiscal Virtual Currency Exchange Co., Ltd,” read a loose translation of the statement.

Initial Plan Aborted

Initially, Tech Bureau had planned to sell a majority stake to Fisco Digital Asset Group as earlier reported by CLC. The move by Tech Bureau to transfer the entire business to Fisco may have been prescient though as the bitcoin exchange halted the registration of new accounts less than a week ago.

In the cybersecurity breach where cryptocurrencies worth approximately US$60 million were stolen, the various digital assets that were affected included bitcoin, bitcoin cash and monacoin. Per Zaif’s statement, victims of the hack who lost bitcoin and bitcoin cash will be compensated using Fisco’s holdings of the two digital assets.

On the other hand those who lost monacoin will be paid back part of their losses in the yen. During the hacking incident Zaif lost around 40% of the monacoins that it held. Tech Bureau has set a rate of 144.548 for every monacoin with the Japanese firm noting that this was at a premium.

“And the compensation amount is “144.548 yen per 1 MONA coin”. This amount was adopted as an intermediate value of the price at Bitfryer Corporation and Bit Bank Corporation at 9:00 am on October 9, 2018. Please note that the exchange rate on this exchange at the same time is 128 yen, and we will compensate more than this amount,” said Tech Bureau.

End of the Road

After the transfer of the entire business to Fisco Digital Asset Group, Tech Bureau plans to shut down the cryptocurrency exchange besides canceling its operating license:

“…after completing the process of this business transfer, we plan to dissolve the virtual currency exchange business after cancelling registration.”

Tech Bureau intends to obtain the approval of shareholders on October 19 when a general shareholders meeting will be held. The Japanese firm has also revealed that it will make a public announcement on October 22. If all goes according to plan the deal between Tech Bureau and Fisco Digital Asset Group will be concluded on November 22.

Featured image from Shutterstock.

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