Worse Than Mt. Gox: Japanese Crypto Exchange Hacked, $530 million of NEM Stolen, Officially

Worse Than Mt. Gox: Japanese Crypto Exchange Hacked, $530 million of NEM Stolen, Officially

Recently happened what is believed to be the major crypto crack in the history. One of the largest Japan-based cyber money exchange platform CoinCheck writhed from the hacker attack. As a result, $530 million (nearly 58 billion of Japanese yen) of alternative currency NEM is currently missing. This has been informed by the platform’s executives, and it is also believed that this hack has overcome even Mt.Gox’s case, according to CCN.

Hot Wallet Trouble

Two company’s representatives took the floor at a formal open conference, acknowledging that the assets preserved in CoinCheck’s hot wallet disappeared. As the Japanese digital money analyst MineCC informed, the executives pointed out at a team of unidentified hackers, who, according to their words, have stolen the capital.

It is remarkable that hot wallets, in contradistinction to cold ones, are not held offline, and they cannot guarantee qualitative safety. Therefore, this kind of wallets can be easily accessed, in case hackers managed to create a breach in servers. Usually, primary cyber money exchanges preserve only little fractions of capital in hot wallets, giving preference to the cold ones, as they are tough for hackers to crack.

Hence, appears a question: why did the exchange keep such a massive amount of funds in the insecure wallet?

“It was hard for us to manage cold wallet,” the executives found an excuse.

Coincheck executives at the conference concerning the hack.Image by MineCC

Despite the official announcement, that CoinCheck has lost $530 million in NEM, it is still unclear whether other cyber coins have been thieved or not.

What Will Happen Next?

As CoinCheck is one of the major Japan-based cyber money trading platforms after BitFlyer, apparently, investors met the news with desperation. Furthermore, according to crypto analyst Joseph Young, both reporters and exchange’s clients are outraged by the fact that the executives refused to admit the platform was not foolproof.

Now, as the country’s Japanese Financial Services Agency has been informed about CoinCheck crack, it is expected that the official investigators will weigh in the case.

Nevertheless, the developers of altcoin NEM, which units have disappeared from the platform due to the breach, as well as the open-source development network, have reassured that no hard fork would take place in order to restore the missing capital.

Such a devastating hack occurred against the background that exchange market in Japan is one of the most significant in the world. For instance, its normal trading volumes surpass the rates of fellow platforms in South Korea and the US. All the exchanges in the country go through a rigorous licensing process so as to guarantee high standard safety measures and so on.

What To Expect From A Cryptocurrency Market In 2020
Crypto market has always been a good target for speculation, shady schemes, and "bad guys". It's also very controversial, especially for financial...
Influence of Recent Cryptocurrency Boom: Does It Still Hurt?
Crypto Exchange Gate.io Agrees With Reports Showing 51% Attack On Ethereum Classic Bitcoin is a decentralized digital currency (also known as...
Cryptocurrency Exchange Security Levels
The growing interest in cryptocurrencies has led to the emergence of a wide selection of both digital money and the sites where you can exchange one...
Belarusbank Considers Setting Up Crypto Exchange
Last year March Belarus introduced a decree by which it legalized cryptos and some activities related to them. This made Belarus a frontrunner in the...
Nasdaq CEO Believes Cryptos Have Place in Future in Economy
Almost two months ago Nasdaq’s representative Joseph Christinat confirmed the rumours that in 2019 the American stock exchange might launch BTC...
Report: Leaders of South Korean Crypto Exchange Komid Face Jail After Fraud
This week the Asian crypto-market has been rich in the news. Earlier it was reported that Japan finally approved Coincheck’s official status as cyber...
Crypto-Expert Brian Kelly Says 2019 Will Bring No Approval to BTC ETF
For the past year, various ETF-projects have been failing to receive the green light from American regulators. And despite the bullish ambitions of...
Ethereum Classic 51% Attacker Reportedly Returned $100,000 to Exchange
Cyber money exchange Gate.io has informed the general public about the return of previously stolen $100,000 worth Ethereum Classic units. According...
Approved Coincheck & Scrutiny on DLT: Japan and China Move in Different Directions
Asian countries seem to go in different directions when it comes to the regulation of cryptos and blockchain. Two Asian tigers — Japan and China...
Tokenized Shares of Apple, Tesla and Netflix to be on Crypto-Exchange
A new trading platform will soon be launched by an Estonian regulated exchange DX.Exchange. The company will mock the mechanisms that the American...