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Tokyo-based Cryptocurrency exchange hacked
February 21 2018, 05:38 | Alonzo Simpson
NEM Price Drops below $0.8 due to Sudden 17% Decline JP Buntinx
One of Japan's largest digital currency exchanges, Coincheck, has apologised to investors for losing up to 420 million euro in virtual money.
As for the transaction period, it will take for the refund to be deposited in your Coincheck wallet, the company has not set any strict deadline. Japan required cryptocurrency exchanges to be licensed after the collapse of Mt. Gox in 2014.
"Investors and traders are very sensitive to any news involving the big exchanges", said Peter Sin, a trader and co-head of the digital currency subcommittee at ACCESS, a Singapore-based cryptocurrency and blockchain industry association. The exchange first moved to halt all trading in NEM, the cryptocurrency allegedly at the center of the theft, Coincheck went on to halt all other activity. The exchange has about 6 percent of yen-bitcoin trading, ranking fourth by market share on CryptoCompare.
Coincheck officials are now pondering a method of compensating some of the users who suffered losses, according to a user who live-tweeted the Coincheck conference [1, 2]. Coincheck is still looking into exactly what happened. Cryptocurrency exchanges are prime targets for criminal activity right now, especially since bitcoin rose to exponential heights at the end of past year. They have had to unfortunately suspended withdrawals of nearly all cryptocurrencies.The exchange has already reported the incident to the police and to Japan's Financial Services Agency. Other estimates peg the loss a bit lower at around $420 million, and some have it as high as $600 million.
It was also reported that Singapore based NEM Foundation was aiding in the tracking of the stolen funds but prospects were unclear if they would be able to recover any of the missing crypto. Coincheck had however not obtained this license and was not under the regulating authority.
Coincheck's refusal to implement the protocol is the vulnerability the hackers most likely seized upon, according to Lon Wong.
A 30-year-old man from Suginami Ward, Tokyo, who has spent ¥850,000 on the virtual currencyRipple, angrily said, "I came to ask whether my money [the withdrawal of which has been suspended] will be returned".