crime

¥6.7 bil in virtual currency hacked in Japan

26 Comments
By Toru Yamanaka

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© 2018 AFP

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26 Comments
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"We decline to comment on the details of how this illegal access occurred, 

I think the answer to this is very easy. Let’s try, relaxed and outdated internet security protocols.

15 ( +15 / -0 )

Are exchanges in other countries hacked as often as those in Japan are?

10 ( +10 / -0 )

With Japan being well known for severe lack of internet security im surprised people are still risking their money in digital currencies here. First Mt Gox, now this. I'll stick with my Pitapa/Suica tyvm.

11 ( +11 / -0 )

Wouldn't be surprised if it is an inside job. Check the top executives or the IT guys.

7 ( +7 / -0 )

People still invest in bitcoin? Unbelievable...

4 ( +8 / -4 )

People should understand that cyber currency is nothing more than a password, although an elaborate one. Just like passwords get hacked or lost, the same can happen to your money. The best protection is to simply not use cyber currency. There are much more secure ways to store your money. However, if the speculative lure of cyber currency is too much to resist, here are some precautions: keep as little as possible on an exchange; use a high quality hardware cold wallet to store the rest; and always print out a paper wallet and keep it in a safe place.

7 ( +7 / -0 )

SerranoToday 01:25 pm JST

People still invest in bitcoin? Unbelievable...

Bitcoin is not about investment ... It's about using a currency not controlled by a central entity.

4 ( +6 / -2 )

Huh. Fools and their PRETEND money are soon parted, too.

Who knew?

0 ( +5 / -5 )

I keep saying it.... these "hacks" have all the ear marks of a Yakuza job. The Yakuza basically identify an insider working at one of these Crypto companies. They then slowly approach the person, wine, dine and other things happen until they get their hooks in him. After that they put the pressure on and and go in for the kill. It is worth it.... and its virtually untraceable. The "insider" isn't going to say anything either. A lot of people think there is actually a "hack" happening.... I disagree.... it is an inside job.

1 ( +1 / -0 )

Bubble, bubble, bubble..

-2 ( +2 / -4 )

Japan has zero security. When the government releases information about security which state you should update your virus protection as the number one security measure you know they have no idea what they are talking about.

2 ( +2 / -0 )

I was in Bic Camera yesterday, looking at golf clubs. I was surprised to see a sgn saying they accept Bitcoin payment.

1 ( +2 / -1 )

I live in the countryside, we usually trade products. No money, no bitcoins. Currency fluctuations, hacking, price of gold...no effect. Solar panels. Cheap or free water. People should use technology or work, and move to the countryside.

1 ( +2 / -1 )

Goodlucktoyou

I live in the countryside, we usually trade products. No money, no bitcoins. Currency fluctuations, hacking, price of gold...no effect. Solar panels. Cheap or free water.

Damn!! Take me with you!!!!! I'll bet the locals are friendlier too!!!

0 ( +1 / -1 )

It's not hard for hackers to hack those Windows XP computers...

-1 ( +1 / -2 )

"Bitcoin is not about investment ... It's about using a currency not controlled by a central entity."

OK, people still using bitcoin? Unbelievable...

-2 ( +1 / -3 )

GoodlucktoyouToday 02:36 pm JST

I live in the countryside, we usually trade products. No money, no bitcoins. Currency fluctuations, hacking, price of gold...no effect. Solar panels. Cheap or free water. People should use technology or work, and move to the countryside.

You guys can live in autarky ? No exchange with outside ?

SerranoToday 02:45 pm JST

"Bitcoin is not about investment ... It's about using a currency not controlled by a central entity."

OK, people still using bitcoin? Unbelievable...

Everyday more people realize that they cannot trust their central governments anymore.

-2 ( +0 / -2 )

Japan is as bad at keeping virtual cash as they are in the thousands they keep in purses or wallets in hard cash while traveling and come across pick-pockets. They are a target because they are an EASY target. No one else gets hacked this much and fails to stop it every time. Japan wants to be a leader in virtual money -- CASH-BASED Japan! -- but methinks they need to start by investing in cyber-security and stop using software, systems, and the thinking that goes with them from ages ago.

3 ( +4 / -1 )

Bitcoin is not about investment ... It's about using a currency not controlled by a central entity.

In reality, nearly all the transactions and holdings of it are speculative investments. It is only used meaningfully as a currency by criminals, but they will be in and out of real money just long enough to make the transaction.

Bitcoin does not meet the standardized tests of money or currency. Importantly, it is not a reliable store of value.

5 ( +6 / -1 )

Bitcoin does not meet the standardized tests of money or currency. Importantly, it is not a reliable store of value.

That comment is sooo 2017... not to mention inaccurate.

It is only used meaningfully as a currency by criminals

That comment is soo 2016.... I have used it. I know many people who have used it. None of us criminals.

0 ( +1 / -1 )

SaikoPhyscoToday  02:00 pm JST

I keep saying it.... these "hacks" have all the ear marks of a Yakuza job. The Yakuza basically identify an insider working at one of these Crypto companies. They then slowly approach the person, wine, dine and other things happen until they get their hooks in him. After that they put the pressure on and and go in for the kill. It is worth it.... and its virtually untraceable. The "insider" isn't going to say anything either. A lot of people think there is actually a "hack" happening.... I disagree.... it is an inside job.

That all sounds quite believable.

Now, how would you go about proving your theory.

1 ( +1 / -0 )

gogogoToday  02:19 pm JST

Japan has zero security.

That's a gross exaggeration.

When the government releases information about security which state you should update your virus protection as the number one security measure you know they have no idea what they are talking about.

Then, what should the government be advising people to do?

-1 ( +1 / -2 )

Yes, for the last time! The risk of losing my life long investment is worth it as long as the government stays out of my business. I have nothing to hide, I do this knowingly!

0 ( +0 / -0 )

 People should use technology or work, and move to the countryside.

did that 2 yrs ago , best life choice I ever made. I have large house 430sq/m 4600sq/ft (not wood) and my mortgage is less than your average rental apartment in the city, traffic is almost zero compared to the city can drive everywhere , plenty of parking spaces at my home have 3 cars room for 5 no need for expensive parking spaces the thing I love about Japan is even though Im less than an 1 hr drive away from the city center Im still classified as country in Japan. seriously people look at property on the outskirts of your city , much of it is dirt cheap, convenience isnt worth all the stress associated with living close to everything and everybody.

2 ( +2 / -0 )

@Gremlin.... Gremlin.... I've seen it happen first hand in Japan. In the exact same way I wrote above is how it happened. The guy the Yakuza got their hooks into was a Japanese co-worker in charge of physical securities and our bank accounts. I found it unusual that on to separate occasions separated by 4 or 5 months, he came to work with a neck brace on. He said the taxi he was in was rear ended.... both times. A few months later everything came crashing down when we found out that he has appropriated $10 million in stock certificates to the Yakuza and then wrote himself a $10 million check and disappeared. He was caught.... but basically once the Yakuza found out what he did for a job... they slowly went to work on him until he was in too deep. So for $60 million worth of untraceable Bitcoins.... why wouldn't the Yakuza do the same. The Japanese Yakuza has been into financial crime for decades but no one wants to point the finger at them.

0 ( +0 / -0 )

 The Japanese Yakuza has been into financial crime for decades but no one wants to point the finger at them.

What you describe sounds very possible, though I don't see how it connects to this case yet. I would also think that the Yakuza don't just target some random employee. I would expect that the employee you describe was already engaged with the yakuza in some way, most likely he was a gambler.

Gamblers are easy targets. They get hopelessly in debt, and then can be used as drug mules or whatever to help pay that debt off.

So it could be that, or it could be a simple hack. Zaif is one of the exchanges that has not complied with recent government rules on exchanges. That may change, as the loss has already been covered by a large financial firm looking to get into the business. They will be calling the shots from now on. It may be good for their customers in the long run.

1 ( +1 / -0 )

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