Cryptocurrency exchange loses $400 million worth of coins in massive NEM hack

A man walks past a poster that informs customers that bitcoin can be used in this shop in Tokyo. Bitcoin is recognised as legal tender in the world's third-biggest economy. prices of Cryptocurrencies slumped on Friday after one of Japan’s biggest Bitcoi

A man walks past a poster that informs customers that bitcoin can be used in this shop in Tokyo. Bitcoin is recognised as legal tender in the world's third-biggest economy. prices of Cryptocurrencies slumped on Friday after one of Japan’s biggest Bitcoi

$400 million worth of cryptocurrency has disappeared from a Japanese exchange.

In a press conference at 23.30 Japan Standard Time (14:30 UST), Wakata Koichi Yoshihiro, the Coincheck exchange's president, and Yusuke Otsuka, the COO, announced that hackers have gained access to $533 million (58 billion yen) worth NEM (XEM) crypto coin.

At a press conference in Tokyo at midnight Friday, Coincheck Inc.

Following the breach, Coincheck put a halt on NEM trading, followed by a restriction on purchases and sales of all digital currencies, save for Bitcoin.

It's important to note that Coincheck is not registered with the Financial Services Authority of Japan which is the regulator that controls exchanges in the company.

In 2014 major Tokyo-based bitcoin exchange MtGox collapsed after admitting that 850,000 coins - worth around $480 million at the time - had disappeared from its vaults.

According to now available information, the hacker (s) stole only NEM tokens, a recently launched cryptocurrency, ranked the tenth digital currency in the world, based on market cap.

Nutella 'riots' break out in France over supermarket sale
The were offering the 950g jars for 1.41 euro (£1.23), down from 4.50 euro (£3.93), which is just under 70% off. The police were called to a supermarket in Ostricourt, northern France, after a fight reportedly broke out.

Regarding the amount of compensation for affected customers, the company only said, "We'll do everything we can to not cause trouble [to our customers]".

The loss would be the biggest to affect a bitcoin exchange, exceeding the 46.5 billion yen that went missing from Mt. Gox, a now defunct virtual currency exchange.

The news had a negative impact on the entire cryptocurrency market, but Ripple and NEM suffered the heaviest blows. They were very relaxed with their security measures.

The trade freeze looks to be tied to NEM, which consequently saw the following message sent out to users on the exchange: "Depositing NEM on Coincheck is now being restricted".

Coincheck managed its NEM accounts on systems vulnerable to hacking via external networks. The combined 525.3 million NEM stolen, some 5.8 percent of the total circulating NEM supply, is valued at roughly $500 million.

Meanwhile, news of the hack has led to a drop in the value of cryptocurrencies. Cryptocurrency exchanges are prime targets for criminal activity right now, especially since bitcoin rose to exponential heights at the end of past year.

Recommended News

  • IPL's Rajasthan Royals fork out £1.4m for Cumbria's Ben Stokes

    Among the Australian stars, Kolkata Knight Riders snapped up prolific-scorer Lynn for $1.5m and left-arm paceman Starc for $1.47m. They even won the bid for Deepak Hooda for Rs 3.6 crore, only to lose him to Sunrisers Hyderabad's Right to Match card.
    Apple reworking iBooks app to get back into the digital books

    Apple reworking iBooks app to get back into the digital books

    Department of Justice sued Apple and several publishers for colluding to artificially raise the price of books. The online retailer won a big competitive advantage several years ago when the U.S.
    Hugh Masekela was a voice for the youth - ANC Youth League

    Hugh Masekela was a voice for the youth - ANC Youth League

    Masekela had been a virtuosic jazz musician in South Africa before landing in NY in 1960, aspiring to be a bebop star. It's an artistic approach that saw him turning up on many other recordings while in exile in the U.S. "In 2010, Mr.
  • Justice Department demands documents from sanctuary cities

    Justice Department demands documents from sanctuary cities

    For example, federal immigration authorities are prohibited from entering Chicago's Cook County Jail due to sanctuary policies. Department of Justice on Wednesday calling on them to prove they're cooperating with immigration authorities.
    De Bruyne Comments On Sanchez Snubbing Man City For Man Utd

    De Bruyne Comments On Sanchez Snubbing Man City For Man Utd

    City won't lose sleep over one transfer, however, and now lie 12 points ahead of their city rivals at the summit of the Premier League after 24 matches.
    Is Apple planning to kill the original iPhone X?

    Is Apple planning to kill the original iPhone X?

    Instead, iPhone X will probably disappear altogether, while a new set of two iPhone X-like devices will take its place. The last iPhone model to be cancelled ahead of its normal end of life cycle was the iPhone 5C back in 2014.
  • Foreign exchange rates react to Mnuchin, Hammond comments on dollar, pound

    Foreign exchange rates react to Mnuchin, Hammond comments on dollar, pound

    Mnuchin declined to preview Trump's speech, but he said the president's message would be true to his America First rhetoric. On the eve President Donald Trump's arrival at the event, he said that the USA delegation to Davos was its largest ever.
    Chinese Lab Clones the World's First Primates Using Dolly-the-Sheep Technique

    Chinese Lab Clones the World's First Primates Using Dolly-the-Sheep Technique

    They warn that the possibility of cloning humans comes with its own set of complex set of ethical, moral and legal dilemmas. Under this, the scientists transfer the nucleus DNA of a cell , into an egg which has had its nucleus DNA removed.
    Pliskova rallies to reach Open quarter-finals

    Pliskova rallies to reach Open quarter-finals

    The victor of this match would next meet either Simona Halep , the #1 seed, or Karolina Pliskova , seeded #6, in the semifinals. Kerber lost that attacking drive during her crisis of confidence previous year , but Halep never got the chance to test her.
  • FBI Agent Fatally Shot Kidnapping Victim During Operation to Save Him

    FBI Agent Fatally Shot Kidnapping Victim During Operation to Save Him

    Investigators said FBI agents were conducting an operation at the home when the victim, Ulises Villadares, was shot. ET), jolted neighbors - one of whom told NBC affiliate KPRC they awoke to bullets flying: "We just heard gunshots".
    Michigan State President Stepping Down Due To Larry Nassar Case

    Michigan State President Stepping Down Due To Larry Nassar Case

    The past year and a half has been very hard for the victims of Larry Nassar , for the university community, and for me personally. Nassar worked at MSU for nearly 30 years as a sports doctor. "As tragedies are politicized, blame is inevitable", Simon says.
    Myanmar building, but no sign Rohingya are returning

    Myanmar building, but no sign Rohingya are returning

    Tensions have soared in recent days in the overcrowded Bangladeshi camps housing the Rohingya with many refugees refusing to return to Myanmar .

We are pleased to provide this opportunity to share information, experiences and observations about what's in the news.
Some of the comments may be reprinted elsewhere in the site or in the newspaper.
Thank you for taking the time to offer your thoughts.