Coincheck, a Tokyo-based cryptocurrency exchange, has suffered what appears to be the biggest hack inside history of cryptocurrencies, losing $532 million in digital assets (nearly $420 million in NEM tokens as well as $112 in Ripples).
In 2014, Mt Gox, one of the largest bitcoin exchange at that will time, filed for bankruptcy after admitting the item had lost $450 million worth of Bitcoins.
Apparently, the cryptocurrency markets reacted negatively to the news, which resulted in 5% drop in Bitcoin cost early This specific morning.
In a blog post published today, the Tokyo-based cryptocurrency exchange confirmed the cyber heist without explaining how the tokens were stolen, as well as abruptly froze most of its services, including deposits, withdrawals as well as trade of almost all cryptocurrencies, except Bitcoin.
Coincheck also said the exchange had even stopped deposits into NEM cryptocurrencies, which resulted in 16.5% drop in NEM coin value, as well as additional deposit methods including credit cards.
During a late-night press conference at the Tokyo Stock Exchange, Coincheck Inc. co-founder Yusuke Otsuka also said that will over 500 million NEM tokens (then worth around $420 million) were taken via Coincheck’s digital wallets on Friday, nevertheless the company didn’t know how the tokens went missing, according to brand new source Asahi.
The digital-token exchange has already reported the incident to the law enforcement authorities as well as to Japan’s Financial Services Agency to investigate the cause of the missing tokens.
“We will report on the damage situation as well as cause of the case, measures to prevent recurrence, nevertheless first we could like you to take every possible measure to protect our customers,” said Executives of the Financial Services Agency (translated).
This specific incident marks yet another embarrassing hack inside globe of digital currency technology, Yet again reminding us that will the volatility in cryptocurrency prices is actually not going away anytime soon.
So far, the exchange has not provided any official statement regarding the cause of This specific hack. We will keep you updated about This specific incident. Stay Tuned!