Bloomberg: Risks Related to GMO Hacking Incident Have Spread to Japan's Credit Market

TechFlow reported, Oct. 29 — According to Bloomberg, after Japanese IT giant GMO Internet suffered a cyberattack, related risks are spreading to Japan's credit market. Market data show that the spread on a yen-denominated bond issued by GMO Internet, maturing in June 2031, widened to about 174 basis points on Oct. 28, up from about 122 basis points on Oct. 20, before the company disclosed the security incident, reflecting investor concerns over earnings impact and rising compensation costs.

GMO Internet had previously suffered an attack that led to a suspected leak of customer information. The company refused to pay a ransom and said it plans to compensate customers for losses. Reportedly, GMO Internet operates the cryptocurrency exchange “Z.com EX,” which has been licensed by the Securities and Exchange Commission of Thailand and the Ministry of Finance of Thailand. The exchange disclosed that it has been acquired; the acquisition involves all shares of the target company held by shareholders including GMO Internet and its related subsidiaries. It remains unclear whether the customer data involves the related cryptocurrency exchange.

Source: TechFlow