Bloomberg: Risks related to the GMO hack have spread to Japan's credit market

On October 29, following a cyberattack on Japanese IT giant GMO Internet, related risks are spreading to Japan's credit market, according to Bloomberg. Market data shows that the yield spread on a yen-denominated bond issued by GMO Internet and maturing in June 2031 widened to approximately 174 basis points on October 28, up from around 122 basis points on October 20 prior to the company's disclosure of the security incident, reflecting investor concerns over potential damage to earnings and rising compensation costs.

The cyberattack on GMO Internet allegedly resulted in a leak of customer data. The company has refused to pay the ransom and stated it plans to compensate customers for their losses. Reports indicate that GMO Internet operates the cryptocurrency exchange "Z.com EX", which holds approvals from Thailand's Securities and Exchange Commission and the Ministry of Finance. The exchange disclosed that it has been acquired, with the transaction involving all shares of the target company held by shareholders including GMO Internet and its related subsidiaries. It remains unclear whether the compromised customer data pertains to this cryptocurrency exchange.