Japan Cryptocurrency Exchange Lost $530 Million In Hacking

Hackers stole several hundred million dollars of a lesser-known digital currency from a noteworthy Japanese trade Friday. All major crypto currencies, including Bitcoin, Ripple, and Ethereum fell sharply. "We shall respond by prioritizing the interests of our customers". The exchange has about 6 percent of yen-bitcoin trading, ranking fourth by market share on CryptoCompare. However, Coincheck officials admitted the company had not taken this security step with regard to the NEM virtual currency because it lacked the technological skills and personnel.

Coincheck said Friday that some 500 million tokens of NEM, worth around $400 million at the time of writing, according to comments at a press event attended by Bloomberg. Because the suspension was given no explanation and the money wasn't transferred to any other exchange, this led many to believe that someone may have hacked Coincheck. They have had to unfortunately suspended withdrawals of nearly all cryptocurrencies.The exchange has already reported the incident to the police and to Japan's Financial Services Agency. Coincheck managed its NEM accounts on systems vulnerable to hacking via external networks.

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Coincheck CEO Koichiro Wada and Chief Operating Officer Yusuke Otsuka said it is so far unclear who was responsible for the hack, how it was perpetrated and what damage has been done. The company is not certain when it can resume normal operations. Deposits made to your account will not be reflected in your balance, and we advise all users to refrain from making deposits until the restriction has been lifted. "Please accept our sincerest apologies for this inconvenience", the blog post reads.

According to its website, which proclaims it is "the leading bitcoin and cryptocurrency exchange in Asia", Tokyo-based Coincheck was founded in 2012 and had 71 employees as of July a year ago. The company provides two-factor authentication (2FA) and cold storage. An earlier hack, a comparatively modest 1,500 bitcoins, in May 2015 lost $350,000 in user funds.

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Coincheck was founded in 2012, is based in Tokyo, Japan, and was in the middle of getting a license from the Japanese government to operate as a legitimate cryptocurrency exchange in the country.

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