The $400 Million Cryptocurrency Hack – NEM Tokens Taken From Japan’s Coincheck Exchange

Crime, News, Regulation | January 26, 2018 By:

Coincheck, one of Japan’s biggest cryptocurrency exchanges, has reported that about $400 million USD in NEM Tokens have been stolen from a hot wallet maintained by the company. The theft may be the second-largest in dollar volume in digital currency’s short history.

Coincheck Inc. co-founder Yusuke Otsuka called a press conference at the Tokyo Stock Exchange and reported that the tokens (estimated at 500 million tokens) were gone, and that the company didn’t know how it happened. Until that is determined, the exchange has suspended all withdrawals and halted trading in all tokens except bitcoin. It also will not take deposits in NEM coins.

“We are looking into the facts surrounding Coincheck,” Japan’s Financial Services Agency said. Japan has been rapidly licensing new exchanges over the last nine months. The country previously saw the biggest cryptocurrency hack in history with the fall of the Mt. Gox exchange, which saw bitcoin valued at more than $400 million vanish in 2014.

NEM is the 10th-largest cryptocurrency by market value,

Coincheck was founded in 2012 and is headquartered in Tokyo’s Shibuya district. The exchange is well-known in Japan, as it runs frequent TV commercials featuring local comedian Tetsuro Degawa.