Japanese Exchange Coincheck Says Hackers Stole $400m Cryptocurrency

by StartupWorld Staff         

A Tokyo based Japanese cryptocurrency has revealed that it lost more than $400 million in an alleged hack. According to the reports, Coincheck says almost 500 million tokens stolen from the digital wallets. NEM is the tenth largest cryptocurrency company in the world. It is the ultimate platform which primarily aimed at enabling payments securely. 

Next day after the hack, a press meet has taken place. The exchange's presidents and chief operating officer Koichi Yoshihiro, Yusuke Otsuka estimated the total loss of $533 million. After hours of speculation, Coincheck said that all coins sent outside of the venue. It has suspended all withdrawals including the Tokens. Due to this incident, the value of XEM has decreased gradually. 

Do you know? Japan is the first country which licenses crypto exchanges. In a blog post, NEM announced that coin checker payments features would be temporarily unavailable at 5 pm JST on 27/01/2018. But the users can still be able to log in and get access to their dashboards during this particular period. 

This company built on top of the blockchain, which follows environmental-friendly methods for doing transactions. On the other side, Bitcoin mining requires significant computing power. Coin check is a bitcoin wallet that offers exchange service.  Its headquartered in Tokyo and Japan. Koichiro Wada & Yusuke Otuska found Coincheck. It is a company that operates various exchanges between Bitcoin, Ethereum, and Fiat currencies in Japan. 

Even before the hack, Mt.gox is carrying the torch for suffering the significant crypto theft. The amount which has stolen from the coin check is more when we compared with Mt.Gox in 2014. This type of cryptocurrency can increase capitalization. 

Coincheck not registered with japan's financial services agency. The president of coin check apologies for its inconvenience, and he is thinking about how to compensate their customers. Nowadays, cryptocurrency exchanges are the central targets of many criminal activities. 

Cyber attackers were targeting the ICOs, As the reports suggest that overall, 10 percent of all funds were changing hands. They have gathered the interest of investors. The events allow funding cryptocurrency or blockchain related projects that proven to lucrative in the long run. 

The initial coin offerings have popular enough to outstrip venture capital investments in blockchain projects.  As per the latest reports, Hackers have been able to steal an average of $1.5 million per month. Mainly hackers target most high-profile names through ICOs. 

In any sector, project founders mostly keep focusing on attracting investors. They often forget about security & privacy issues. So hackers successfully take advantage of more excited, and large-scale ICO, which were more prone to many attacks, and exchange hacking. 

You may hear of some of the most common attack vectors is Phishing, which is followed by DDOS attacks, employee attacks, exchange hacking, or direct website compromise. Calls have made for more regulations which as tighter security surroundings of ICOs. As a result, ICOs gained popularity by leading players who emerge globally. The high-risk investments with the complexity of ICOs must be managed, which ensures their credibility. 


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