Yet again another Japanese crypto exchange comes to limelight due to its failure in managing the exchange. Zaif, one of the big and popular exchanges in Japan experienced a system glitch yesterday that allowed all its users to purchase Bitcoin at 0 Yen.
The glitch that lasted for 18 minutes between 5:40 to 5:58 was exploited by users to full extent. Due to the glitch, the market cap was displayed as 2246 trillion Yen. One user was even reported for buying Bitcoin equivalent to $20 trillion but later when he tried to encash it, Zaif’s protocols stopped it from happening.
Due to the increase in the market cap and the humongous order of Bitcoin; Tech Bureau authorities, the tech company that operates Zaif rectified the glitch by 7:34 the very same day. All the transactions that were carried out during those 18 minutes were canceled and all the user accounts were corrected accordingly.
According to Zaif, the glitch was caused due to the failure of the price calculation of ‘Simple Trading’ platform enabling the users to trade Bitcoin and other altcoins at zero Yen.
Zaif’s glitch has become the second biggest mishap of Tech Bureau, as they happen to be managing Coincheck, the crypto-exchange platform which got hacked recently and lost close to $530 million cryptocurrencies and has enraged the Japanese regulators. To avoid such circumstances, Japanese regulators have started to conduct frequent raids in exchange platforms to check their operations.
Japan’s Financial Security Agency (FSA) says,
“Coincheck which was run by Tech Bureau lacked the security features to protect itself from these kinds of hacks.”
Taro Asa, Japan’s Financial Minister in the beginning of the month spoke regarding these recurring incidents and says,
“Raids will be more frequent now when compared to earlier as the government is very serious about cryptocurrency.”
Kishimoto Haruno, an investor and enthusiast of cryptocurrency says,
“Incidents such has this is completely understandable and will be occurring time and again. But what matters the most is how the situation is handled and according to me, this could not have been handled any better.”
Hachi Hiruzen, a tech manager and a Financial Analyst from Shibuya says,
“This could’ve been definitely avoided. How is it that a company which is well renowned such as this, let another huge incident occur. But anyway, what matters is that nothing was lost.”
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