Hacked Exchange Zaif Unveils Compensation Plan as Part of Takeover by Fisco

Repayment will start after Tech Bureau transfers ownership of the Zaif exchange to Fisco.

Zaif will start reimbursing its hack victims when technology group Fisco takes over the Japanese crypto exchange as part of an earlier deal with Tech Bureau. Zaif’s owner is expected to complete the transaction by the end of next month, according to a notice posted on Wednesday on Fisco’s website.

Zaif plans to refund users who had Monacoin (MONA) stolen by using Japanese fiat currency at a rate of 144.548 yen for one coin. It was equivalent to $1.29 as per the yen-US dollar rate at 09:43 UTC on Thursday, while Monacoin was changing hands at $1.15 at the same time. The platform ceased all MONA transactions on Wednesday.

“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,” Tech Bureau said in the notice.

The agreement indicates that Fisco would use its own cryptos to repay Bitcoin (BTC) and Bitcoin Cash (BCH) holders.

“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.”

On September 14, Zaif lost $60 million worth of BTC, BCH, and MONA in a hack attack, but the company reported the incident to Japan’s Financial Services Agency (FSA) and the public several days later. At that time, Tech Bureau unveiled that Fisco Digital Asset Group would provide $44.5 million for victim repayments in exchange for the majority of Zaif’s shares. However, during the deal-making process, Tech Burau decided to fully transfer Zaif ownership to speed up the compensation process. Tech Bureau shareholders will vote the deal with Fisco on November 19, with a full Zaif transfer expected to happen three days later. The crypto exchange will cancel its FSA license after November 22.

Japan-based Fisco, which offers a wide range of financial services, currently owns a relatively small cryptocurrency exchange. The platform clocked $71,000 in trading volume for the last 24 hours compared to nearly $33 million for Zaif, as per Coinmarketcap data. Fisco claims to have recently obtained a license for Kinki Bureau of Finance.