Bitpoint in Trouble as More Cryptocurrencies Stolen

Last week, Tokyo-based Bitpoint announced that it had been hacked and cryptocurrencies worth more than $32 million stolen. In response, the company halted all services like withdrawals, deposits, and trading. Of the cryptocurrencies that was stolen, $23 million of it belonged to customers while the remaining $9 million belonged to the company. The company is owned by publicly traded company, Remixpoint.

In a report on Sunday, the company announced that additional cryptocurrencies worth more than $2.3 million had been stolen. This brings the total stolen funds to more than $34.3 million. According to a report by Japan Today, the extra stolen funds were discovered at exchanges that were located outside Japan. This will certainly be worrisome to the company’s customers because 75% of the funds belongs to them. In response to this news, the stock price of Remixpoint has dropped by more than 32% in the past 5 days.

Shortly after the news broke, focus shifted to Bitpoint and how it is operated. The company was one of the many exchanges that were investigated by the Financial Services Agency (FSA). This was after the agency found that it had not followed the set regulations. It was also revealed that it was used in the sale of the Bitcoins worth more than $318 million that were stolen in the Mt. Gox hack in 2014.

This was a major news in the cryptocurrencies world because security is one of the reasons why most people have avoided the industry. In early 2018, cryptocurrencies worth more than $520 million was stolen from Coincheck, which was then one of the most trusted name in the industry. In September, more than $60 million worth pf cryptocurrencies was stolen from Zaif, another Japanese exchange.  Late last year, crypto holders in a Canadian exchange died when the CEO died without sharing his password. In total, cryptocurrencies worth more than $1.7 billion was stolen in 2017.

The news on the Bitpoint hack came as regulators around the world are up in arms against a proposed cryptocurrency by Facebook. In Europe, leaders have opposed such a move saying it would give too much power to a single company. In the United States, the president, financial secretary, Fed chair, and bipartisan lawmakers have questioned the new cryptocurrency as well.