Cryptocurrency heist in Japan: Hackers steal $100m

August 20, 2021 | 2 minutes read

The leading Japanese cryptocurrency exchange company, Liquid was attacked by hackers. The company’s digital wallets were compromised, approximately 100 million dollars were stolen.

A crypto currency exchange  company Liquid announced that its “warm” wallets (connected to internet) have been compromised due to a cyber attack, BBC reported.Furthermore, the company announced that they are shifting the crypto currencies to “cold” wallets (not connected to internet) that are more secure. The company took Twitter to announce the hack:

“We are sorry to announce that #Liquid Global warm wallets were compromised, we are moving assets into the cold wallet,” the company said on Twitter.

Liquid further revealed that it has recently detected the unauthorised access of some customers to its crypto wallets. And the breach has prompted it to halt the cryptocurrency withdrawal, however the other services like fiat withdrawals and deposits were kept open. The company said in its recent update on Twitter that it was doing everything to track down and freeze the stolen assets.

The company did not share the loss. Yet,Elliptic, the Block chain analytics firm, said in its analysis  that estimated $97 m worth cryptocurrencies have been stolen. Liquid however has said that it was tracing the stolen cryptocurrencies and working with other companies to recover the assets.

The Liquid, while explaining its damage control actions, said that  due to the assistance of the crypto-currency community and other exchanges, around 16.13mm USDe of ERC-20 of the stolen crypto has been disabled for on-chain movement (frozen).

Liquid is one of the world’s top 20 biggest cryptocurrency exchanges in accordance with the daily cryptocurrency volume. It was founded in 2014 and works in over 100 countries all around the globe.

Last week, the digital token platform Poly Network also faced a similar cyber attack because of which the company lost almost $600 million. 

This is not the first time or second time the Japanese have faced this kind of lethal attack  as back in 2018 the  company named Coincheck in Tokyo lost around $534 million crypto currency in the hack. Another company Mt.Gox lost an estimated  $400 million and $480 million in the cyber attack.

Although back in 2017, keeping in view the increase in the number of  cyber attacks, Japanese legislators also passed a new law to regulate the bitcoin exchanges .