Business

Erik Gibbs

Bitpoint Taiwan sues Bitpoint Japan over exchange hack

Last month, Bitpoint became the latest cryptocurrency exchange to be targeted by hackers. Approximately $32 million was stolen when digital thieves broke in and made off with assets, despite the exchange having previously asserted that it was prepared to thwart any possible attack. Reparations are underway and users of the platform are expected to receive at least some of their holdings, but the company operating the exchange, Bitpoint Japan, is now having to answer to a lawsuit tied to the hack. The suit isn’t coming from users, either – it’s coming from one of its own subsidiaries.

According to The Mainichi, a Japanese English-language media outlet, Bitpoint Taiwan is suing its parent company after billing irregularities were discovered. Bitpoint Taiwan asserts that Bitpoint Japan has taken more than its fair share of funds, reportedly overbilling by around $4.7 million.

The overbilling may have never gone noticed if it hadn’t been for the July hack. That event led the Taiwanese subsidiary to take a closer look at its books and it uncovered a history of its parent company’s misguided actions. The subsidiary states in the lawsuit, “It is clear that [Bitpoint Japan] had billed us based on erroneous numbers.”

Bitpoint Taiwan receives funds from local customers and then sends these to Bitpoint Japan in accordance with bills the parent company remits to the subsidiary. By launching the lawsuit, the company hopes to protect its clients and to try and prevent any additional losses. The company’s lawyer, Hirotaro Kato, states, “We’re aiming to protect the funds of clients in Taiwan. It could develop into an international issue.”

On top of the $4.7 million stemming from “accounting irregularities,” Bitpoint Taiwan wants its parent company to pay about $4.7 million more as a direct result of the hack. Bitpoint Japan is reportedly not aware of the lawsuit. It states, however, that the two entities have been trying to work together to reach an amicable solution.

After the hack was uncovered, Bitpoint temporarily shut down its platform. Funds that had been stored in hot wallets, including Bitcoin Core (BTC), Bitcoin Cash (BCH), Ether (ETH), Litecoin (LTC) and Ripple (XRP), went missing before Bitcoin could plug the leak. The exchange turned back on earlier this month.

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