Cybersecurity Experts Uncover Crypto Exchange Thieves
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Cybersecurity Experts Uncover Crypto Exchange Thieves

A Japanese Crypto exchange platform known as Zaif was hacked and Cybercriminals made away with $60 million worth of Digital Assets on September 2018. However, the hackers might not get away with the crime as Japan Digital Design cybersecurity experts have uncovered critical information that sheds light on the identity of the bad actors. The cybersecurity service provider is a subsidiary of Mitsubishi UFJ Financial Group (MUFG) that is a global leader in technology, financial services, and other critical services.

The investigation took a multidimensional approach that requires the input of different companies with various degrees of expertise and capabilities. This is the reason why Japan Digital Design is associating with Takayuki Sugiura from L Plus- an information security consultancy, and TokyoWesterns investigators from Capture the Flag Cyber Security firm.

The Investigation Targets The Outflow Of Cryptocurrencies

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Following the hack, the criminals initiated transactions to transfer Digital Assets from the wallets that they had breached the security features to their selected wallets. This factor is being exploited by investigators and the results indicate a high possibility of success. The process has so far been successful as revealing information has been found.

Some of the stolen Cryptocurrencies were in the denomination of Monacoin, Bitcoin, and Bitcoin Cash Cryptocurrencies. The experts were able to the transfer of some of the funds last month and they have systematically recognized the source for five movements. This is a process that has been ongoing since mid-October 2018 and the fact that the team was able to conclude about the origin of the transactions on Monday 5th November indicates that the team has been employing cutting-edge investigative strategies.

Authorities have already been notified. Security agencies from the government are relying on the characteristics of the transaction authorizer, as per the finding, that is detailed in nature.

Static Analysis Of Blocks On A Network Can Uncover Fraudulent Transfers

Technically, experts from the three security companies focused on analyzing the remittance route of the market Virtual Tokens. They deployed a virtual currency node for the static analysis of blocks on the platform on a large scale. Since the outflow of the funds was already executed and Blockchain platforms record transactions for transparency and openness, the team was able to obtain confidential clues such as IP addresses, the location of the hacking computers, etc.

The strategy also entailed looking into the accuracy information that the clues provided. The team went as far as gauging the cost of the exercise to enable Zaif Crypto Exchange platform to arrange for costs coverage.

The Hacking Of Zaif Raised Concerns

In October, the Financial Services Authority (FSA) of Japan was at loggerheads with Tech Bureau-the operator of Zaif -following a delay to report the incidence fearing a customers’ panic. Tech Bureau later promised to compensate users who lost Digital Assets on the attack, a move that necessitated Zaif to transfer its ownership to Fisco.

In the first half of 2018, $540 million was lost following Crypto wallets’ hacks. This success will serve to quell market jitters that are prompted by security fears as users are assured of a last resort option in case of a hack.

November 6, 2018

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Samantha Mitchell


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