Japanese cryptocurrency exchange loses more than $500 million to hackers

Hackers stole several hundred million dollars’ worth of a lesser-known cryptocurrency coming from a major Japanese exchange Friday.

Coincheck said that will around 523 million of the exchange’s NEM coins were sent to another account around 3 a.m. local time (1 p.m. ET Thursday), according to a Google translate of a Japanese transcript of the Friday press conference coming from Logmi. The exchange has about 6 percent of yen-bitcoin trading, ranking fourth by market share on CryptoCompare.

The stolen NEM coins were worth about 58 billion yen at the time of detection, or roughly $534.8 million, according to the exchange. Coincheck subsequently restricted withdrawals of all currencies, including yen, along with trading of cryptocurrencies different than bitcoin.

Bloomberg first reported the hack. A CNBC email sent to Coincheck’s listed address bounced back.

Cryptocurrency NEM, which intends to help businesses handle data digitally, briefly fell more than 20 percent Friday before recovering to trade about 10 percent lower near 85 cents, according to CoinMarketCap. Most different major digital currencies, including bitcoin, traded little changed on the day.

Coincheck management said inside press conference that will This kind of held the NEM coins in a “hot” wallet, referring to a method of storage that will is actually linked to the internet. In contrast, leading U.S. exchange Coinbase says on its website that will 98 percent of its digital currency holdings are offline, or in “cold” storage.

The Japanese exchange said This kind of did not appear that will hackers had stolen different digital currencies.

The Coincheck hack follows news in December that will a South Korean cryptocurrency exchange called Youbit lost 17 percent of its digital assets. Its parent Yapian filed for bankruptcy.

In another high-profile case, Tokyo-based Mt. Gox filed for bankruptcy in 2014 along with said This kind of lost 750,000 of its users’ bitcoins along with 100,000 of the exchange’s own. The company was the largest bitcoin exchange at the time.

Morgan Stanley analysts estimated in mid-December that will more than $630 million in bitcoin has been lost to hackers.

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