Another Cryptocurrency Exchange Falls Victim to Cyber-Attack
Bitpoint, a cryptocurrency exchange based in Japan, has recently joined the growing list of platforms that have been targeted by cyber-criminals, losing tens of millions of dollars in the process. The company was forced to halt all services on Friday, including withdrawals, deposits, payments, and new account openings, as it launched an investigation into the attack. Authorities in Japan have been notified of the incident.
Details of the Attack
The hackers were able to access funds not only from Bitpoint’s hot wallets but also from its offline cold wallets. The breach was initially detected when errors occurred in Ripple remittances. It took the company three hours to realize that the attack had also compromised funds stored in Bitcoin, Bitcoin Cash, Litecoin, and Ethereum.
Approximately 3.5 billion yen ($32 million) was stolen, with the majority of the funds ($23 million) belonging to customers. It remains unclear whether Bitpoint intends to reimburse its customers for their losses.
A Growing Trend
Bitpoint is just the latest in a series of cryptocurrency exchanges that have fallen victim to cyber-attacks. In the past year, two Japanese exchanges, Zaif and Coincheck, suffered significant losses due to breaches. Similar incidents have occurred at exchanges around the world, with Singaporean exchange Bitrue and industry giant Binance both experiencing substantial losses in recent months.
Despite the frequency of these attacks, most exchanges are able to recover at least the majority of the stolen funds and return them to customers.
Global Efforts to Combat Cyber-Crime
In an effort to enhance collaboration and information sharing in the fight against digital crimes, Europol recently hosted a meeting of cryptocurrency experts at its headquarters in The Hague. The goal of the gathering was to establish partnerships and best practices to improve law enforcement’s ability to combat cyber-criminal activities.
As the cryptocurrency industry continues to grow and evolve, exchanges must remain vigilant and implement robust security measures to protect their users’ funds from malicious actors.