Tech Bureau, the firm behind the Japanese crypto exchange Zaif, has revealed a drastic new plan to compensate users after a major hack last month.
Tech Bureau said in a release Wednesday that it had signed an agreement with Fisco – a publicly listed investment firm in Japan – to transfer in full the Zaif business to Fisco's existing cryptocurrency exchange.
In return, the new owner will take on the responsibility for compensating users who lost funds in the breach. The two stated this approach would avoid further risks for Fisco and users on the platform.
Zaif, currently one of the 16 licensed crypto exchanges in Japan, experienced the hack on Sept. 20, when some $60 million in cryptocurrencies were stolen, including nearly 6,000 bitcoin. Other compromised assets included bitcoin cash and the monacoin cryptocurrency, as CoinDesk reported at the time.
The statement indicated that Fisco would use its own bitcoin and bitcoin cash to refund users who had lost holdings of the two crypto assets. According to a statement by Fisco, the company started operating a bitcoin exchange in August 2016.
As for those who lost monacoin, Tech Bureau said Fisco would pay back users in the Japanese yen at a rate of 144.548 yen, or $1.28, per token. At press time, one monacoin is trading at $1.14, according to CoinMarketCap data.
Immediately after the hack, Tech Bureau had made an initial agreement with Fisco that the latter would offer 5 billion yen, or $44.5 million, to support Zaif's compensation plan and to acquire a major stake in the platform. Yet after negotiations, the initial plan was changed to encompass a full transfer of the company.
The two now expect to host shareholder meetings in October before they execute the business transfer on Nov. 22.
Once the process is complete, Tech Bureau plans to dissolve its cryptocurrency exchange business and cancel its license with the Financial Services Agency, Japan's financial market regulator, the statement said.
Japanese yen image via Shutterstock
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