Zaif, a Japanese cryptocurrency exchange sometime back encountered a system glitch that resulted in quite a large number of traders buying Bitcoin for free. It has been the topic of discussion around the globe, but none caught the headlines more than one user that managed to purchase about $20 trillion dollars worth of Bitcoin.
A person familiar with the most recent developments said that the glitch happened on February 16th between 5:40 p.m. and 5:58 p.m lasting for 18 minutes. It was within the timeframe that the users proceeded to place their respective BTC/JPY orders at a rate of 0 yen per Bitcoin.
It is just shocking how quite a significant number of users took the chance to capitalize on the temporary error. Zaif has reported that about 2,200 trillion yen worth of BTC is missing though it is currently making a close follow up. At this point in time, the market cap of Bitcoin stands at almost $180 billion.
A top official working with Zaif opined, “The blatantly erroneous nature of the order resulted in Tech Bureau, the Osaka-based firm that runs the Zaif exchange, identifying and resolving the issue by 7:34 p.m the same day. All transactions made as a result of the glitch were invalidated.”
The interested parties have moved ahead to pose several questions, one of them being to do with obtaining a perfect explanation as to how the glitch happened in the first place. Zaif has come out clearly to state that it resulted from failure in the price calculation system of the platform’s “Simple Trading” element and that was how the situation ended up the way it did.
It is worth noting however that quite a significant number of the Japanese Regulators are currently on high alert. Japan’s Financial Services Agency (FSA) is mounting a lot of pressure at the moment on the Tech Bureau.
It is quite insistent on the various security practices being set in place but this is understandable more so considering the massive Coincheck hack that just occurred. Losing $530 million in cryptocurrency is no joke according to one official.