BITPoint Japan infringement clarification report 3

Dear Clients:

This is the BITPoint Hong Kong customer support center.
Thank you for your continuous support.

The latest update of BITPoint Japan (BPJ) infringement incident (took place at 11th Jul 2019 22:12, Tokyo time) as below.

  1. The outflow of BPJ cryptocurrency
    The type and the amount of outflowing cryptocurrencies from BPJ hot wallet are shown in the following table. Except for hot wallet, there is no illegal outflowing cryptocurrency from the cold wallet.
    Type of Cryptocurrency Outflowing Amount Equivalent Value* Customer Assets BPJ Reserved
    BTC 1,225 BTC 1.53B Yen 1.28B Yen 0.25B Yen
    BCH 1,985 BCH 0.07B Yen 0.04B Yen 0.02B Yen
    ETH 11,169 ETH 0.33B Yen 0.24B Yen 0.08B Yen
    LTC 5,108 LTC 0.05B Yen 0.04B Yen 0.0B Yen
    XRP 28,106,343 XRP 1.02B Yen 0.44B Yen 0.58B Yen
    合計 3.02B Yen 2.06B Yen 0.96B Yen

    *The above conversion rate was calculated at 16:00 on 11th Jul 2019, the date of this incident. In addition, the number of the decimal point is indicated by an unconditional rounding method.
  2. Take measures immediately to prevent damage from expanding
    BPJ has continued to thoroughly investigate the causes and intrusion paths and has taken various security measures. However, considering the high possibility that the hot wallet's private key might be stolen, the following measures are taken as well.
    1. Related-wallet preventive measures
      • Move all the cryptocurrencies managed by BPJ in the hot wallet to the cold wallet.
      • Report the occurrence of this event to the customers and suspend all services.
      • Announce the customers 1. should not transfer the cryptocurrency to the BPJ managed wallet address 2. transfer the transferred cryptocurrency to the cold wallet.
        Additionally, so far there was no indication that the cold wallet has been abnormally transferred. BPJ will continuously monitor the amount of cryptocurrency in the cold wallet to ensure asset security.
    2. Investigation-reason measures
      With the assistance of external experts, BPJ will take the following measures in order to find out the original cause of the problem and solve it comprehensively.
      • Investigation and analysis of commercial systems’ login track
      • Investigation of operation vulnerability
      • Investigation of hot wallet server
      • Investigation of hot wallet device vulnerability
      • Investigation and tracking of illegally outflowing cryptocurrencies
    3. Others
      In order to prevent the expansion of illegal infringement, BPJ commissioned JVCEA (Japan Virtual Currency Exchange Association) members to assist the following items:
      • Before the event is properly controlled, JVCEA appeals to all users that do not transfer the cryptocurrency to the wallet address managed by BPJ.
      • If any wallet receives the cryptocurrency from a suspected-illegal wallet address, JVCEA will suspend the account from depositing, purchasing, and all the other related services (ie, frozen accounts).
      • Besides, BPJ also requested assistance from Ripple and overseas major cryptocurrency exchanges.
  3. Future Policy
    After comprehensive evaluation and dispatch, BPJ will maintains all the types of cryptocurrency and the amount of assets that suffered illegal infringement with no financial impact on to the company.
    In addition, BPJ group will not be affected but keep the business continuity after maintaining the equivalent of 3 billion yen of cryptocurrency.
    BPJ will continue to investigate the cause of this incident and prevent the victim expanding again. BPJ will review and adjust our operating policy to ensure the transaction security. In the meanwhile, BPJ will restart the services to our customers as soon as possible.
  4. BITPoint Overseas Exchanges
    Part of BITPoint Overseas Exchanges had suffered illegal infringement as well. The total loss amount of all the oversea exchanges is preliminarily estimated at around 250 million yen and the details will be updated as soon as possible. BPJ will take the responsibility as well.

BITPoint is an exchange with legal license, regulated by Japan Financial Services Agency. Therefore, all the related-security incidents need to be reported to Japan Financial Services Agency with the corresponding measure. BITPoint Hong Kong will follow up with BITPoint Japan and clarify the situation as soon as possible.

※Owing to the cooperation with Japan Financial Services Agency investigation, any action associate to BITPoint account is still suspended currently. Please do not transfer any cryptocurrency into your wallet address on BITPoint Hong Kong. Apologies for any inconvenience and appreciate for your understanding.

BITPoint Japan infringement clarification report 3

BITPoint Hong Kong - customer service center

Email: support@bitpoint.hk

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