Saturday, 21 July, 2018

Bitcoins for free? Japanese cryptocurrency exchange lands in hot water again

Bitcoins are seen in this illustration Bitcoins are seen in this illustration
Nellie Chapman | 22 February, 2018, 03:34

A system glitch at a cryptocurrency exchange site run by an Osaka-based firm enabled users to obtain digital money for free, with one apparently "purchasing" Bitcoin valued at 2,200 trillion yen ($20 trillion) and then attempting to cash in on it.

The company announced February 20 that the incident on its Zaif exchange website occurred four days earlier, when seven users obtained quantities of cryptocurrencies.

Unfortunately for Zaif, one of those customers who purchased Bitcoin while the glitch was active has been unwilling to accept the mistake and has been fighting to keep his profit from purchasing the free Bitcoins.

Bitcoin's rocky start of 2018 was not easy for investors, especially those who held their bullish expectations from December, 2017, when the "people's currency" circulated around worldwide exchanges for as much as $20,000 per coin. The theft also drew into question Japan's system of overseeing exchanges.

Zaif is among the 16 official cryptocurrency exchanges in Japan. The entire market cap of bitcoin is about US$183 billion.

Zaif is one of the 16 registered cryptocurrency exchanges in Japan. The breach was the biggest single heist of cryptocurrency, surpassing the infamous Mt. Gox incident that resulted in $450 million worth of Bitcoin being stolen. Aso said they were trying to find out if local exchanges were taking adequate steps to protect customers' accounts.

The body will set out rules on issues like exchange security and advertising, and will lay out penalties for members who don't follow the policies, the Nikkei business daily reported on Wednesday.