Hacked Exchange Zaif Announces Reimbursement Plan for Monacoin Victims, but Not Bitcoin Holders

Hacked Exchange Zaif Announces Reimbursement Plan for Monacoin Victims, but Not Bitcoin Holders

Tech Bureau Corp., parent company of the cryptocurrency exchange Zaif, released a press release yesterday (October 10, 2018) to update users on the status of their hacked coins. As reported by CryptoGlobe, Zaif was hacked in September 2018 and lost nearly $60M in bitcoin (BTC), bitcoin cash (BCH), and monacoin (MONA).

The first part of the press release covers the sale of Zaif, Tech Bureau Corp. will be selling Zaif to Fisco Cryptocurrency Exchange. Although the business is being sold, Fisco will still be held responsible for refunding users’ lost cryptocurrencies. The transfer of the business will complete on November 22, 2018. Once Zaif is completely transferred to Fisco Cryptocurrency Exchange, refunds will begin again.

Fisco has also announced its plan to compensate users for lost MONA:

For customers that had owned Monacoin, compensation will be made in Japanese yen to the equivalent value of cryptocurrency that had been possessed. Compensation will be paid at a rate of ¥144.548/Monacoin.

¥144.528 translates to $1.29. Which represents a fair compensation, as MONA was valued at $0.50 on the date of the hack (September 19, 2018). After the hack, MONA traded around $1.50, so $1.29 seems to be a strong valuation for the lost coins.

Monacoin transactions have also been shut off, ending at 5 PM yesterday (October 10, 2018). Zaif clarifies that there is no fixed schedule set for reimbursements:

Public announcements will be made at a later date of the dates regarding the resumption of transactions, timing of when withdrawals will be possible for the roughly 60% of Monacoin owned by customers and roughly 40% to be compensated for using Japanese yen.

What About BTC & BCH?

Despite this good news for Monacoin holders, Zaif has not announced what will happen to victims of the bitcoin and bitcoin cash hack, despite 5,996 BTC being stolen. The only news about BTC and BCH is that buying and selling is still active, but deposits and withdrawals will not resume until after the transfer to Fisco Cryptocurrency:

For bitcoin and bitcoin cash, cryptocurrency services including transactions, buying and selling through simple transactions and savings shall continue as normal from this day onward. Moreover, deposit and withdrawal services are scheduled to resume after operations have been assumed by Fisco Cryptocurrency, with the specific resumption date to be announced at a later date.

At the time of the hack, Zaif announced that they only had $20M in cash reserves available to compensate users. It’s possible that they decided to forego BTC and BCH reimbursements due to lack of funds. However, a new reimbursement plan for BTC & BCH holders could be announced once Zaif’s transfer to Fisco is complete.