Japanese Crypto Exchange Bitpoint Suffers $32 Million Hack

On the evening of July 11, 2019, Bitpoint, one of Japan’s largest cryptocurrency exchanges, reported a major security breach. As a result of the hack, approximately $32 million worth of digital assets were stolen. The platform is currently offline, with all deposits and withdrawals temporarily suspended.

How the Hack Was Discovered

The breach was first detected when errors began occurring with Ripple (XRP) transactions. Within 27 minutes of noticing these issues, Bitpoint administrators realized the platform had been compromised. Three hours later, they confirmed that other cryptocurrencies had also been stolen.

Extent of the Attack

The attack affected both the exchange’s hot and cold wallets, meaning Bitpoint’s entire infrastructure was compromised. In total, the hackers stole 3.5 billion yen (about $32 million) in cryptocurrencies, including Bitcoin, Bitcoin Cash, Litecoin, Ripple, and Ethereum. Of the stolen funds, 2.5 billion yen (around $23 million) belonged to Bitpoint’s customers, while the remaining amount was the exchange’s own reserve funds and profits.

Response and Regulatory Actions

Bitpoint’s management has not yet announced how they plan to compensate customers for the stolen funds. In similar past incidents, Japanese financial regulators have taken a strict approach. For example, after previous hacks at Japanese exchanges Coincheck and Zaif, authorities required the platforms to reimburse affected customers.

Ongoing Investigation

Technical details of the Bitpoint hack have not been disclosed, as both the exchange’s staff and law enforcement are still investigating the incident.