The cryptocurrency industry suffered another significant setback on July 12, 2019, as Japanese exchange Bitpoint announced it had fallen victim to a devastating hack resulting in the loss of approximately $32 million worth of digital assets. The breach, which primarily involved Ripple (XRP) and several other altcoins, forced the exchange to suspend all services immediately as it scrambled to assess the full extent of the damage.
TL;DR
- Japanese crypto exchange Bitpoint hacked for approximately $32 million
- Ripple (XRP) and other altcoins were the primary targets of the attack
- Exchange suspended all services including trading, deposits, and withdrawals
- Roughly 2.5 billion yen of stolen funds belonged to customers
- Bitpoint is owned by Remixpoint Inc., a publicly traded Japanese company
Details of the Bitpoint Security Breach
Bitpoint, a Tokyo-based cryptocurrency exchange operated by Remixpoint Inc., disclosed that hackers had managed to siphon off digital assets worth approximately 3.5 billion yen ($32 million) from its hot wallets. The stolen funds included a significant quantity of XRP alongside other alternative cryptocurrencies, highlighting the vulnerability of exchange-held altcoin reserves.
Of the total amount stolen, roughly 2.5 billion yen belonged to the exchange’s customers, while the remaining 1 billion yen represented Bitpoint’s own holdings. The discrepancy between customer and company losses underscores the outsized impact on retail traders who trusted the platform with their assets.
The exchange moved swiftly to halt all operations, suspending trading, deposits, and withdrawals across its entire platform. The sudden shutdown left thousands of users unable to access their funds, sparking immediate concern across Japanese crypto communities and beyond.
Impact on Altcoin Markets
The hack sent ripples through altcoin markets during a week that was already marked by heightened volatility. XRP, which was trading at approximately $0.3441 on July 12 according to CoinMarketCap data, faced additional selling pressure as news of the breach circulated. Litecoin (LTC) was hovering around $105.30, while Bitcoin Cash (BCH) traded near $354.46 — both showing declines amid the broader uncertainty.
The incident also raised fresh questions about the security practices of mid-tier exchanges, particularly those handling substantial volumes of alternative cryptocurrencies. Unlike Bitcoin, which benefits from the deepest liquidity pools and most mature custody solutions, altcoins often present unique challenges for secure storage and rapid transfer detection.
Japan’s Regulatory Response
Japan’s Financial Services Agency (FSA), which had already tightened oversight of cryptocurrency exchanges following the infamous Coincheck hack of January 2018, was expected to launch an investigation into the Bitpoint incident. The FSA’s enhanced regulatory framework requires exchanges to maintain robust security protocols, segregate customer funds, and submit to regular audits.
The Bitpoint breach demonstrated that despite Japan’s relatively mature regulatory environment for digital assets, exchange security remained a persistent challenge. The country had positioned itself as one of the first major economies to establish a comprehensive licensing regime for crypto exchanges, yet incidents like this continued to erode public confidence.
Broader Context: A Week of Crypto Turbulence
The hack occurred during a particularly turbulent period for the cryptocurrency market. Bitcoin was trading around $11,816 on July 12, having surged dramatically over the preceding weeks. Ethereum sat at $276.28, reflecting the broader market’s mixed sentiment. The same week saw former U.S. President Donald Trump publish a series of tweets criticizing Bitcoin and cryptocurrencies, adding regulatory uncertainty to an already nervous market.
The combination of high-profile hacks and political headwinds created a challenging environment for altcoin projects seeking to establish credibility with institutional investors and mainstream users.
Why This Matters
The Bitpoint hack serves as yet another reminder that exchange security remains one of the most critical challenges facing the cryptocurrency ecosystem. While Bitcoin’s decentralized network has proven remarkably resilient, the centralized platforms that most users rely on to trade and store their assets continue to represent single points of failure. For altcoin investors in particular, the incident highlights the importance of understanding custodial risk — not all exchanges offer the same level of protection, and smaller platforms handling diverse token portfolios may face outsized vulnerability. As the industry matures, the gap between well-regulated, security-first exchanges and their less careful competitors will only become more consequential for users deciding where to trust their digital assets.
Disclaimer: This article is for informational purposes only and does not constitute financial advice. Cryptocurrency investments carry significant risk. Always conduct your own research before making investment decisions.
32 million in hot wallets in 2019. when will exchanges learn that hot wallets should hold like 5% max of funds
5% is generous. most exchanges in 2019 were keeping 30-40% in hot wallets for liquidity. bitpoint wasnt unique in that regard, just got caught
cold_wolf_ 30-40% in hot wallets was industry standard in 2019. coincheck had just lost 500M NEM doing the same thing and nobody changed anything
cold_wolf_ 30-40 percent in hot wallets is insane. even in 2019 that was reckless. coincheck lost 500M NEM the year before and exchanges still didnt learn
Hana O. coincheck losing 500M NEM six months earlier and Bitpoint still keeping 30-40 percent in hot wallets is beyond negligent
even in 2024 exchanges keep getting hit the same way. bybit lost $1.5B from a cold wallet spoof. the lesson never gets learned
xrp being the primary target is interesting. fast settlement and high liquidity makes it perfect for quick extraction
xrp settlement speed cuts both ways tho. exchanges hold it specifically because they can move it fast, which means hackers can extract it fast too
2.5 billion yen of customer funds gone. remixpoint stock must have tanked hard that day. another reason to self custody
remixpoint stock dropped 20% in a single day iirc. self custody was literally the cheaper option
Kim S. 20% stock drop in one day on a 32M hack. Remixpoint market cap was probably only worth a few hundred million. existential hit
Kim S. remixpoint stock dropping 20% in a day. shareholders paid for an exchange that couldnt manage hot wallet risk. self custody was free
Yui S. Remixpoint stock dropping 20% is nothing. coincheck lost $530M in Jan 2018 and NEM barely recovered. japans exchange security was a revolving door for years
Remixpoint stock tanking 20percent in a day because their exchange couldnt manage hot wallet security. shareholders paid for someone elses hack
XRP was the hackers withdrawal token of choice in 2019. 3 second settlement and deep order books everywhere. the speed that made it useful for exchanges made it useful for thieves
Remixpoint stock dropping 20 percent on the hack was the actual punishment. $32M stolen but shareholders lost way more than that in market cap
was living in tokyo when this happened. the FSA response was actually swift, every exchange got audited within weeks. but then coincheck and others happened anyway
XRP being the main target makes sense. 3 second settlement and every exchange had deep XRP order books in 2019. perfect extraction vehicle
rex_ exactly. XRP was basically the ATM of stolen crypto. fast settlement, liquid everywhere, and chain analytics for it were terrible compared to BTC
Kim D. XRP being the ATM of stolen crypto in 2019 is wild. coincheck got hit with NEM the year before and exchanges still kept hot wallets fat
Kim D. XRP being the go-to extraction token because of 3 second settlement is darkly funny. the speed that made it useful for exchanges made it useful for hackers too
chainhopper_ XRP settlement speed being an advantage for exchanges is exactly why it was a disadvantage for security. the same liquidity that made it useful made it easy to drain
chainhopper_ XRP settlement speed being a double edged sword is the best take in this thread. the same feature that made it useful for exchanges made it the perfect exit ramp for hackers
Jiwoo H. calling japans exchange security a revolving door is generous. it was an open barn door with no lock and a welcome sign for hackers
32M gone and Remixpoint stock cratered 20%. the shareholders who actually paid for the exchange security got punished harder than the hackers
remixpoint_short_ and the punishment was the market correctly pricing in that management had no idea what they were doing with custody. self custody was always the trade