Post Hack — BitPoint to Refund 50,000 Affected Users

Wilfred Michael 

Wilfred Michael

News reporter

17 July 2019,
18:49
Post Hack — BitPoint to Refund 50,000 Affected Users

Japan-based cryptocurrency exchange, BitPoint, which suffered a security breach last week has promised to refund the 50,000 users who lost their assets to the ugly incident.

According to a Tuesday report by the local news agency, Asahi Shimbun, BitPoint has already made provisions for returning these consumer funds totaling 2.06 billion yen ($20 million). The exchange would then bear the loss for its crypto holdings worth roughly $8 million, bringing the total amount lost to the hack to $28 million, or $4 million less than what the firm initially reported.

However, a slight controversy lies in the fact that BitPoint wants to payback the users in cryptocurrencies, although prices have dropped significantly in the past few days. Bitpoint’s Director, Kimio Mikazuki, refused to discuss why the exchange has chosen that step and only said in the report that “it includes legal matters.”

With that in mind, the exchange is going to pay back customer holdings that are part of the 1,225 bitcoin, 1,985 bitcoin cash, 11,169 ether, and 5,108 litecoin which they hackers made away with.

Users can expect to receive these funds as soon as the exchange resumes operations in the coming days according to the report.

Interestingly, if BitPoint pays back users as they promise to, then the firm would have followed the steps of leading cryptocurrency exchange, Binance. Binance refunded its users of the roughly $40 million worth of Bitcoins that it lost to a security breach in early May.

Another recently hacked exchange, Bitrue which lost $4 million to hackers also refunded users and promised to reevaluate its security strategies to prevent similar losses in the future.

 

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