Topic: Another bad news from japan - page 2. (Read 372 times)

For such a huge amount to be stolen,I usually tend to believe there is an insider manipulation.It is sad and sickening usually to hear such and makes me lose confidence in the ability of exchanges to safely keep user funds.

Yes that is true but I would say this was a huge improvement from the MtGox scandal. Although users still didn't get their refund, the exchange said it will assure that all of those that were harmed by this hack will get their money back. The NEM dev team also helped a lot by rapidly creating a system that "tainted" the stolen coins, and the hackers wont be able to do anything with them right now apparently.

But yes, these security flaws can't really keep happening in the this space, otherwise it will be hard to trust in the ability of the exchanges in keeping users funds secure.

That's a lot of xems and likely enough to shake the market a bit. I noticed it as well that it seems exchanges have been targeted by hackers so it's really important for traders and holders to have a separate reliable wallet to store their coins in to avoid losing money

What a horrible news! $534 million worth of NEM are stolen that's a huge amount of money. Sad to know that hackers won once again, I'm pretty sure that they are now celebrating after they breached into Coincheck successfully.

This is not only a bad news for NEM holders out there but for the exchange itself because they are going to pay what has been stolen. This might definitely lead to bankruptcy but I'm glad to know that they're not shutting down (so admirable).

I hope the authorities will find the suspects very soon and punish them for the damage they have done.

I think all those hack only shown the vulnerability of the central exchangers, maybe only after that shock therapy, people realize that it's time for decentralized exchanges

I believe that all exchanges should spend the lion's share of revenues on ensuring their security. Hire professionals who have been working in cybersecurity for a long time, or the hackers themselves. And not yesterday's students who only received diplomas yesterday, and today they already think of themselves as great IT people. There have already been a lot of thefts from various exchanges and unfortunately other exchanges have not taken a lesson out of this.

Exactly! You know, there is what we call contributing negligence in that the crime would not have materialized were it not for the negligence of the owners who easily took unwise risks. They should have been more cautious knowing that these assets of ours are only virtually existing. They should have exercised diligence at all costs! Now, because of what happened, it not only affected them per se but the whole cryptocurreny community because the demand lessened hence the price correlatively decreased as well.

We knows that holding big amount of funds on exchanges or hot wallets are not safe but still people are doing that.

It maybe a bad news to the crypto users and more people will afraid now to invest on crypto currencies.So investors keep you funds in software wallet then your coins will be safe forever.

If your copy pasting material, can you please qoute it or put some some source where you found it.

Anyway, this hack is nothing compared to MT Gox although the amount is bigger and effects of it is smaller, so it didn't totally ruin the market value of all coins.

This Is bad news but does not mean you should sell all of them at this time. The market is going up instead of continuing to fall. Do not believe in that information because of the many people waiting for it to fall to buy it at a low price.

this makes me a little anxious because I hold a coin in exchange
how, Coincheck claims that it knows the address where the stolen NEM is currently stored by the hacker, and hopes to track down the cause "This is very difficult because this is an anonymous transaction.
This bad news makes the price decline.

Cryptocurrencies fell Friday after Japan-based digital exchange Coincheck suspended client deposits and withdrawals for virtual currencies except bitcoin, saying it had been hacked.

Coincheck said it was investigating "unauthorized access" of the exchange that appeared to result in a loss worth half a billion US dollars of NEM, the 10th biggest cryptocurrency by market capitalization.

"At 3 am (1800 GMT) today, 523 million NEMs were sent from the NEM address of Coincheck. It's worth 58 billion yen based on the calculation at the the rate when detected," said Coincheck's chief operating officer Yusuke Otsuka late Friday.

"We're still examining how many of our customers are affected," he said, adding that the exchange was trying to find out whether the breach was from Japan or another country.
After the exchange suspended deposits and withdrawals, NEM plunged more than 16 percent in a 24-hour period, according to CoinMarketCap.com.

Major virtual currencies had rebounded slightly by late Friday but were still down, with Bitcoin dropping 2.13 percent to $10,987.70, ripple sliding more than six percent and ethereum flat.

Coincheck said it had discovered the breach at 11.25 am and announced it had suspended trading for all cryptocurrencies apart from bitcoin in a series of tweets.

According to its website, which proclaims it is "the leading bitcoin and cryptocurrency exchange in Asia", Tokyo-based Coincheck was founded in 2012 and had 71 employees as of July last year.

In 2014 major Tokyo-based bitcoin exchange MtGox collapsed after admitting that 850,000 coins -- worth around $480 million at the time -- had disappeared from its vaults.

Bitcoin is recognized as legal tender in Japan and nearly one third of global bitcoin transactions in December were denominated in yen, according to specialist website jpbitcoin.com.

The virtual currency is well down from record highs approaching $20,000 in late December, having rocketed 25-fold last year, before being hit by concerns about a bubble and worries about crackdowns on trading it.

Billionaire investor George Soros, known for his legendarily successful currency trading, has dismissed bitcoin as a "typical bubble".

But speaking Thursday at the Davos summit, he said the cryptocurrency would likely avoid a full crash because authoritarians would still use it to make secret investments abroad.

Bankrupt exchange can't possibly give refunds to everyone. This will affect the community the reputation of our economy will decrease once again. Japan has big investors,the quantity of users will decline will face another dump again so watch out for more.

When the exchange can be assured that all amount will be returned then it is positive news. But with these losses then some people's confidence will decrease and this could be a thing that is detrimental to Nem development, it could be NEM price down but I guess it will not happen for now. Whatever the conditions we should be able to avoid these circumstances, the owners of the exchange should be able to improve security so that the level of confidence in the digital currency will not decrease.

This is bad, people will now afraid to put their fund in exchanges, and this could caused people to quit trading crypto, the hackers make crypto currencies reputation tainted, and this can become lesson for other exchanges to never underestimate the security system, hackers nowadays is lurking  everywhere and wait for the chances to steal the fund, hopefully there will be refund and everything can back to normal

I think it is on the part too of Coincheck exchange has to be blame for not storing such big amount of coin of NEM on a multisig or cold storage wallet. As per my opinion I think they ahould provide all the refunds of each investors especially the one who have invested on NEM. But as per said on the conference it is really a worst case scenario that funds would never be return but must pursue the culprits too for the sake of investors refunds of their monies.

Well looking to the coinmarketcap I would say NEM didn't bleed at all since it shows gains of 28%, and is the biggest gainer on the top 10 crytpo by market cap. I guess all the bad news were kept for the exchange itself, and didn't affect crypto at all. Of course that Coincheck didn't declare bankruptcy, and said that it will try to restore the lost funds. Maybe the markets are not being affected by this hack, because they believe that the exchange might be able to solve the problem.

Another exchange claiming getting hacked. This is the reason we do not keep our coins in exchanges.

Just why did they not use multi sig wallet? I believe Nem wallets have multi sig capable.


They lose 535 Million dollars, small exchange maybe but still large amount stolen. We are yet to see the effect of this event.

It’s being called the biggest theft of crypto currency and the total amount stolen is even greater than the money that was stolen from Mt Gox but since it’s not bitcoins that has been stolen, it has not really affected the market at all.

Ironic, the price of NEM increased by 25%, during the last several days.