Cryptocurrency change loses $400 million price of cash in huge NEM hack

The theft is said to have affected almost 260,000 users, and Coincheck notes that it will reimburse all those who lost money if needed while it investigates where the funds were transferred. A total of 523 million coins were stolen, it said.

Coincheck announced in an that it had stopped trading of NEM and other coins as it dealt with the hack. "The source of the refunded money is being carried out using our own capital".

The resulting loss exceeded the value of bitcoins which disappeared from MtGox in 2014. Only Bitcoin services remained available on the exchange. It was reported earlier this week that one of Japan's biggest cryptocurrency exchange Coincheck was hacked.

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Coincheck will be under the supervision of the Financial Services Authority and will contunie to operate under FSA laws until a decision is made.

Major Japanese newspapers yesterday labelled the management of virtual currencies at Coincheck as "sloppy" and said the company had "expanded business by putting safety second". The 500 million NEM tokens were kept in an internet-connected "hot storage", and since then the exchange has put a freeze on nearly all trading and withdrawals.

  • Rita Burton