Japan hit by another massive cryptocurrency heist

Japan has been hit by another cryptocurrency heist with $60 million stolen, as Reuters reports on Thursday September 20th 2018.

Ilia Kolochenko, CEO and founder of web security company High-Tech Bridge comments as follows:

“Unfortunately, even the harsh regulation of crypto markets is no silver bullet. Digital coins are extremely attractive for cybercriminals who can easy launder them and convert into spendable cash, even inspite of some losses due to “transactional commissions”. Most of these operations remain technically untraceable and undetectable, granting an absolute impunity to the attackers. Thus, cybercriminals will readily invest into additional efforts to break in, even if security is properly implemented and maintained.

Compliance does not necessarily mean security – major data breaches of PCI DSS certified merchants are not that unknown for example, likewise intrusions into organizations under even more rigorous regulatory and compliance requirements. Moreover, the vast majority of crypto-companies, including large crypto exchanges, are operating in a very turbulent, hostile and merciless market where a minor mistake can drive you out of business. Therefore, cybersecurity is rather complementary to their growth strategy. Some startups even ignore security and privacy, recklessly using out-of-the-box solutions, putting their customers’ assets at huge peril.

Hence, we will likely see even more data breaches involving crypto-currency companies in 2018 and for the next few years.”

About the Author

Jacob Wolinsky
Jacob Wolinsky is the founder of ValueWalk.com, a popular value investing and hedge fund focused investment website. Prior to ValueWalk, Jacob was VP of Business Development at SumZero. Prior to SumZero, Jacob worked as an equity analyst first at a micro-cap focused private equity firm, followed by a stint at a smid cap focused research shop. Jacob lives with his wife and four kids in Passaic NJ. - Email: jacob(at)valuewalk.com - Twitter username: JacobWolinsky - Full Disclosure: I do not purchase any equities anymore to avoid even the appearance of a conflict of interest and because at times I may receive grey areas of insider information. I have a few existing holdings from years ago, but I have sold off most of the equities and now only purchase mutual funds and some ETFs. I also own a few grams of Gold and Silver