Over $500 million have been Lost to Hackers – Japanese Exchange

Japanese crypto-exchanging platform Coincheck was attacked on Friday by hackers, within which event they took away several hundred million dollars worth in NEM. Approximately 523 mil of the exchanges NEM digital currency coins were shifted to another account. The exchange has about 6 percent of yen-bitcoin trading, ranking fourth by market share on CryptoCompare.

Following up the hack, the digital currency NEM which is made to support businesses handle data digitally dropped dramatically with 20 percent. However, now it is on its above recovering reaching over $1.03 against the US Dollar with 22 percent gain in the last 24-hours.

Coincheck management said in the press conference that it held the NEM coins in a “hot” wallet, referring to a method of storage that is linked to the internet. In contrast, leading U.S. exchange Coinbase says on its website that 98 percent of its digital currency holdings are offline, or in “cold” storage. The Japanese exchange said it did not appear that hackers had stolen other digital currencies.

The event [considered the biggest crypto-hack ever] follows up the news that a South Korean crypto-exchange known as Youbit back in Dec lost around 18 percent of its digital-assets.

In another high-profile case, Tokyo-based Mt. Gox filed for bankruptcy in 2014 and said it lost 750,000 of its users’ bitcoins and 100,000 of the exchange’s own. The company was the largest bitcoin exchange at the time.