Client Attempts to Withdraw $20 Trillion Due To Crypto-Exchange Glitch

However, he quickly draw the attention of the users and the company.

0 373

According to Reuters, a Japanese cryptocurrency exchange’s system error allowed a user to attempt to make off with a huge Bitcoin amount.

Tech Bureau Corp. that is based in Osaka operates the Zaif exchange, which experienced a brief glitch last week. This glitch enabled traders to ‘purchase’ cryptocurrency for at zero cost.

When the clients realized what was happening, some decided to take advantage of the 20-minute window in order to get free coins. One did not hesitate to place an order worth $20 trillion (2,200 trillion yen) at the time, as Asahi Shimbun reported. Then, he tried to quickly sell the coins.

Yesterday, Tech Bureau Corp. announced that the glitch had occurred on February 16. During the incident, seven customers obtained cryptocurrency for free.

Later, the company corrected the clients’ balances and canceled the transactions, Asahi highlights. However, a Reuters source claims that one of the seven users is still negotiating the correction as he tried to transfer the free Bitcoin away from the platform.

At least one user tried to resell the free Bitcoin, but he drew attention even outside of the exchange due to a large amount of cryptocurrency offered within such a short period.

Finally, a Tech Bureau’s official apologized for the brief glitch and stated that the company is going to take measures in order to prevent such incidents from reoccurring.

The news follows the Coincheck exchange’s major hack in January, in a period that Japanese exchanges are under pressure over their technical standards.

 

This incident will probably force new security measures and regulation

On February 16, the government asked the Financial Services Agency, which is the finance watchdog of the country to make inspections at a number of exchanges without a license to ensure their security levels are efficient.

Furthermore, a group of cryptocurrency exchanges is going to team up in order to construct a new self-regulatory frame in the wake of the Coincheck glitch, according to a news report. At last, if this new frame is actually protecting more the users, this accident may be proved beneficial for the investors.

Also read: To Reduce Transaction Fee, Coinbase Plans To Launch SegWit Upgrade

You might also like
Comments
Loading...