Stolen Funds from Zaif Discovered in Europe

MonaCoin (MONA) was traced to an address tied to an IP address in Germany and France.

The hacker who siphoned funds from the Japanese Zaif exchange has attempted to move some of the assets, reported the UPI news portal. MonaCoin (MONA), an asset extremely popular in Japan, was tracked and seen to move to an address tied to a German IP address.

An investigation of the theft that happened this September was led by Japan Digital Design, a subsidiary of Mitsubishi UFJ Financial Group. The researchers tracked IP addresses and identified the attacks as originating in France and Germany.

The hackers took away funds in MONA, Bitcoin Cash (BCH) and Bitcoin (BTC) in five illegal transactions, with four originating in France and one in Germany. The investigation has been turned over to the police, with Japanese and European authorities cooperating. The Zaif hack investigation also included the expertise of security firms EL Plus and Tokyo Western.

The investigation tracked MONA because of the availability of cloud-based nodes. Cloud services are used to run nodes in a way make a coin much more traceable and centralized, with the positive effect of allowing researchers to track transactions.

Japanese exchanges had a reputation for working with full regulatory compliance. However, the practices of storing crypto assets securely are not subject to any regulator. Recently, the Japanese Financial Services Agency (FSA) handed over the responsibility to self-regulate to the local Exchange Association. Since digital assets are new, the protection against thefts is an issue that cannot be decided by the traditional financial system.

Zaif suffered a theft of more than $60 million and will aim to reimburse its customers. But the leak was relatively small compared to the attack against Coincheck, which lost more than $534 million in NEM during the summer months. Coincheck reimbursed its traders at prices of $0.80 per NEM, while the asset slid to $0.09.

MONA currently trades around $1.16, far from the peak at $14.22 reached in December. MONA is an asset supported by direct JPY trading.

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