Coincheck Promises to Repay 90% of Stolen Crypto-Coins

31 January, 2018, 06:10 | Author: Dustin Murphy
  • Coincheck Promises to Repay 90% of Stolen Crypto-Coins

Japan yesterday imposed administrative measures on virtual currency exchange Coincheck after hackers stole hundreds of millions of United States dollars in digital assets from the Tokyo-based firm in one of the biggest heists ever. From our last news about the attack, the theft pointed out some vulnerabilities in trading an asset that global authorities are trying to get hold of. Pre-existing operators such as Coincheck have been allowed to continue offering services while awaiting approval.

Cryptocoins can be stored in what's called a hot wallet, meaning that the cryptographic secrets needed to spend them are trusted to an exchange like Coincheck, making those coins easier to use, or a cold wallet, where you keep the coins offline.

NEM coin's value has dropped to $0.78 from $1.01 on Friday.

Coincheck's CEO Yusuke Otsuka told the Tokyo Stock Exchange that it's possible to trace where the NEM was sent after it was illegally accessed. The Singapore-based group said hackers had not transferred the funds to an exchange or personal accounts.

The hacking at Coincheck, which bills itself on its website as "the leading bitcoin and cryptocurrency exchange in Asia", came to light over the weekend.

On Saturday, Coincheck announced it will issue a full refund to the 260,000 users that were affected by the NEM hack. This works out to roughly $400 million in cryptocurrency from $3.7 billion in funding between 2015 and 2017. The weighted average price was derived using prices during the period beginning with the suspension of new purchases and sales of NEM on the Coincheck platform and ending with the release of this notice.

"It's been long said that cryptocurrencies are a solid system but cryptocurrency exchanges are not". Also, it should be noted the broad cryptocurrency market reacted in a tranquil manner and range trading has been prevalent in the short term. Nevertheless, it had "nothing to do with NEM but rather Coincheck's lack of strong security measures", she said in a series of tweets. "We believe there's so much more potential for our solution, but we have to be respectful to our end users". "If security on the exchanges' is not secure, their currencies can be stolen", Choi said.

The U.S. Treasury described cryptocurrencies as an "evolving threat" this month and said it's examining dealers to make sure they aren't being used to finance illegal activities. Because transactions for Bitcoin and the like are all public, it's easy to see where the NEM coins are - even though they're stolen.

When it comes to cryptocurrency, let the buyer beware and be aware, says TechRepublic's Brandon Vigliarolo.



Anger grows in Kabul after ambulance bomb carnage
The latest attacks come about a week after an assault on the Intercontinental Hotel in the city that killed at least 25 people. A spokesperson for the Taliban, Zabihullah Mujahid , claimed responsibility.

Football star Beckham launches Miami team
Part of the deal is that Beckham's group will also build a training centre and an academy focused on developing local players. MLS, which will stream the event live on its website, said they were participating in what will be "a special announcement".

Apple's next iPhone may feature a 'Full Active LCD', according to analyst
But Apple likely performed strongly in the October-December quarter, given that the iPhone X did not launch until November. Apple has reportedly slashed its production target for the iPhone X by 50 percent following poor holiday sales.

Conservative Writer Says Republicans 'Sacrificed Their Honor' By Attacking FBI
Therefore, Mueller reports to deputy Attorney General Rod Rosenstein because Attorney General Jeff Sessions has recused himself. Democratic Senator Ron Wyden believes the law as it currently exists now prohibits Trump from firing Mueller without cause.

WWE Royal Rumble 2018: Predictions And Card For The PPV
The biggest enduring rumor has been whether or not Ronda Rousey might make her debut as a WWE performer during the Women's Rumble. Cena has become a bit-part player over the last couple of years but you know he will be in a featured match at Wrestlemania .

Ikea founder Ingvar Kamprad dies: Who was Sweden's billionaire business magnate?
Ingvar Kamprad, the enigmatic founder of Swedish furniture giant IKEA , died aged 91 on Sunday, the company said . More than 70 years after its founding, the retailer is now heading for close to £44bn in annual revenues.

Wikileaks founder Julian Assange asks London court to drop United Kingdom arrest warrant
They argue that Assange shouldn't be immune from the law simply because he has managed to evade justice for years. To some, Assange is a cyber hero who exposed government abuses of power.

Exchange Rate 'Volatility' Is 'Source of Uncertainty': Draghi
Draghi said Thursday that recently volatility in the euro's exchange rate was "a source of uncertainty" that merited "monitoring". Besides the European Central Bank news however, EUR/USD is likely to be driven by US news and the strength of the US Dollar.

Flu bug hampers West Brom's FA Cup preparations
The Reds will welcome the Baggies to Anfield on Saturday night, with the victor advancing into the fifth round of the FA Cup . A changed lineup shouldn't prevent Liverpool from using home advantage to make it through to the fifth round, though.

Real Madrid negotiating with Tottenham Hotspur manager
In a remarkable night, goals from Javier Eraso and Gabriel advanced Leganes into the semifinal of the cup. Cristiano Ronaldo remains the biggest obstacle to the deal.