Japan's top financial regulator Financial Services Agency (FSA) has sought explanation from the operator of hacked cryptocurrency exchange Zaif regarding how the breach occurred, and what steps it will take to re-compensate customers who were the vctims of the hack.
Osaka-based Tech Bureau Inc., which operates Zaif, reported last week that Zaif lost 5,966 bitcoins worth 6.7 billion yen ($60 million) after hackers illegally accessed the server of Zaif and transfered money.
The company said that after noticing an unusual outflow of funds on the platform on September 14, it suspended asset deposit and withdrawal services.
The breach of security was reported to the Treasury Department. The company has requested an investigation into the breach.
Bitcoin, monacoin, and bitcoin cash were the targeted virtual currencies.
They want to know why there was a delay in reporting the hack, Reuters reported.
Tech Bureau was asked to submit reports by Thursday regarding the facts and causes of the leakage, the formulation and execution of measures to prevent recurrence, and the firm's response to customer damage, including how it plans to compensate customers.
The company has also been ordered to "review and implement concrete and effective improvement plans" relating to security breaches as outlined in the previous two business improvement orders.
Established in 2014, Zaif is one of the 16 government-approved crypto exchanges in Japan.
This is the second major hack of cryptocurrency exchange in Japan this year.
The country's financial regulator has been issuing a series of business improvement orders to the cryptocurrency exchanges to step up consumer protection in the wake of $530 million theft of digital money from Tokyo-based Coincheck in January.
Japan is one of the most cryptocurrency-friendly economies of the world, where more than 3.5 million people are estimated to be trading with cryptocurrencies.
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