Topic: Another bad news from japan (Read 350 times)

$534 mln.  - this is a cosmic sum. Probably for the whole existence of crypto currency is the first case of such a large kidnapping.

From such news, I'm more and more convinced that there is no perfect security.

This is again an example of how important it is not to fully trust your funds to an exchange. I am somewhat afraid also because I'm storing majority on my altcoins to an exchange. I know from the start it is not a good practice but withdrawal fees makes me think about just storing it there.
With the amount being stolen, I just hope the company can really do a fair approach on this. That they will think the customers' sake more than theirs. This should also be an eye-opener to every echange company to make their security features even more secured and to us users to use it as an exchange only rather than a wallet to store for long time.

Are these coins really stolen or this is the way to get public money to exchange owners wallet?  I think it can't be stolen easily. 

From the experience of Mt Gox, why do coincheck have to be so careless. $530.00 million is not an easy money to be left on an exchange. Why couldn't they practice sound security practices by keeping the funds on cold storage like most exchanges do. This news is going to dampen the confidence of newbie and users of cryptocurrencies.

That was shock, since the trading trends are now still getting low. The crypto world has been punch back again with hacking one of big exchanges in Japan. But as i seen, this exchanges are taking his responsibility to refund all customer money back
https://www.express.co.uk/news/world/911623/bitcoin-latest-japan-coincheck-refund-nem-cryptocurrency-heist
Even though this was bad news, but what Coincheck did will makes market going to trust able for exchanges.

unfortunately those news are accepted and reflect the whole market of crypto in the eyes of investors and media by resulting to a decrease of demand and prices of whole market.

I was hopeful when the Japanese stock market officials explained, but unfortunately they will not be able to bring back the stolen NEMs. They did not explain the reasons for their security weaknesses. For this reason, it was a very unclear statement.

Hesus this is something that I predicted last year that sadly this year we would have our first billion dollar hack. We are well on our way, I hope I am not correct this time .

The good thing in this situation is no other coin was affected and hopefully they can pursue the culprit. With that large amount of money that was lost, i could be a serious scenario for coincheck and could posibly file a bunkrupcy. I believe coincheck would take into account to have a more secure storage for their coins and because of this happenings traders will probably think twice before investing or trading in their site.

I don't trust any online wallet/exchange. Keep your private key safe. That's all you need to do.

What bothers me and astounds me at the same time is the fact that the market hardly reacted to the hack. Even 8 hours after the hack, westerners don't seem to care--I think that's a good thing. It just goes to shows that the public's tolerance for these kind of event is already high enough.

Well that is a good feature for NEM if indeed as part of their specifications. Then how to do this? Can anyone can report of hacking incident and this will automatically mark as "dirty"? Is the system is in place already?

I think those several lost millions of dollars will be refunded according to the news. Well, that is good news too and will make Japan based exchanges gain more respect.

Being stolen is a challenge for the exchange and good coping is good publicity

Damn, that sounds bad. a lil more than 500 million stolen. #HackersGonnaHack!

We can all learn how important is the security in this system who manage wallets... All those systems are at risk just for holding those coins. Hackers will always try to find the way to get those coins just because there is a high prize for the ones who vuln those systems.

Let's hope that doesn't impact much the markets 

Most people don't understand one simple thing about the NEM. It's highly secure blockchain. Coins that were being stolen will not be sold for a long time or may be not ever sold. NEM can mark particular transactions and those XEM that were stolen are "dirty". Hacker can't sell them. In my opinion this news is good for the long term investment in NEM.

actually in my views and opinions.theres no need to be bother if coins will stolen because this coins will remain in circulation,even if they got to stoles those crypto still they need to sell them to earn or exchange them to make money so it will go back to the market and wait for another investors.

Wow another hacking incident. Hackers are really targeting cryptocurrency. This should be investigated as the amount that was stolen was really huge. Also again with my previous post on a hacking incident, exchanges should really invest on security. They need to make their subscriber secured to trust them.

Another problem with an exchange. That’s about 4 in the last few years that I can think of off hand. This is a reminder that it’s not safe to store coins on exchanges. They should be stored in offline wallets unless you are trading them. Exchanges can get hacked or just steal your money and there is no way to recover it.

We cannot blame if people becomes afraid about cryptocurrency, that is why as a believer and a supporter of crypto we kept saying that it involves risk so that if they don't want to try this then it is up to them already. There is no pressure nor a strained here. If they are more on the negative things then nothing will happen.

This happening is the reason why other people are afraid to enter cryptocurrency. They are afraid to lose their money. Just what like happen to NEM.

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.

If people are not using that exchange and how come they were holding over an estimated five hundred million dollars in NEM in their hot wallet,just heard their conversation with the NEM team and it looks like they wont hard fork because of the hack and they blamed the exchange for not using enough security measures to safe guard the coins, i am not sure how they are going to give out that much amount to all the clients.

Yea!  I also saw the bad news.It will become very defficult in the future.Few days ago people suffer Etherdelta hacked problem. Now Japanase exchange hacked and a lot of doller stolen from here.If this will always happen in the future people can not strongly blv any exchange.And we should more secure to take safe ownself.

You do have source regarding on this claim? its quiet odd that they are not registered with the securities board in japan or in any other terms.? This isnt really a surprising thing which it do make bleed into crypto market which i do eventually wait for that thing to happen.People above saying its still up on some percentage we cant still be sure since we dont even know if those coins are already being sold up already or not and as of now we should really expect effects of it.

It affects the whole market of cryptocurrency, but if you look at the price of NEM right now its up by almost 15% this mean that still many people trust this kind of blockchain technology since the problem is on the exchange. Yes, we must be ready when it comes on hacked news because those who are greedy will try to get cryptocurrency easily.

I don't think that people use coincheck exchange much or even use it at all. I haven't heard much about that exchange.
Now that they have proven to be so careless about user's funds, I don't think anyone would want to risk their money in that exchange. But still stupid people will do.
Thankfully they are refunding their clients their money back and hopefully they should shift to a more secure storage option.
But the fault is also of that of the users who use an exchange to store their coins, thinking to be an wallet which it clearly isn't and you don't even have access to the private keys why in the hell's world would you take such a huge risk?

They must be retarded to keep that much money in the hot wallet. Look at their volume, there is no reason to keep that much money in hot wallet for immediate use.

The hack happened because they were incapable of running a exchange ,let alone holding million of dollars worth of coins,they are not even registered with the securities board in Japan and hence they is no insurance and after this incident they are planning to register with them.

You had me worried there because I hold coins in exchanges
"Going forward, Coincheck claimed that it knows the address where the stolen NEM is currently being stored by the hackers, and is hoping to be able to track the culprits" I think it's really hard because this is an anonymous transactions.
This bad news makes the price of NEM decreased 19% within 24 h

Yes that's the only way to keep your investment safe now a days. There is no best place than a hardware wallet or the wallet for which you hold the private keys.

I have always been warning people and friends to keep the coins, tokens into the private wallet only and see this could happen really.

There is nothing more we can do about such events because it's not in our hands and exchangers are responsible for that. If anything goes wrong then they are responsible for our money because the loss is through hacks which is not our responsibility.

Exchangers advertise themselves with all the security measures they have so that they can earn our trust and let us take in to invest. So I believe this forms their responsibility and we must get refunds like the one they did here.

Now we are not safe because few days ago etherdelta hacked and many people lost their asset.I think need to be more security for exchanger or wallet .I am really afraid now and do not trust any exchanger because any time hack any exchanger.what is the solution for this problem??
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I think the best way to secure our valued coins is to store it in the ledger wallet for the meantime.

I think these things or hacking news will rise in future also.
These are the just regular Fud in my opinion.
People will be used to with these news in future.But i agree this is a bad news for crypto world.

I've read some news that says it is not only nem that was hacked, but also reported stolen xrp.

Now we are not safe because few days ago etherdelta hacked and many people lost their asset.I think need to be more security for exchanger or wallet .I am really afraid now and do not trust any exchanger because any time hack any exchanger.what is the solution for this problem??

Just like what happen to mt. gox. History repeats itself.

Recently a large sum of ethereum funds got frozen. Later bitcoins got stolen from some exchanges. Now once again an issue with exchanges has been taking place. That too happening in a country which has been a good supporter of cryptocurrency decreases the reputation of cryptocurrency usage among the people.

If it is real then it is necessary to get out of the NEM quickly because it is likely that its value will decrease, other coin is also at risk. Should expect the floor must have good security. 

It seems like crypto stealing cases are increasing a lot these days. However, its a bad news for the crypto exchanger owner but not for the owners of those NEM who got affected.

The owner of exchanger clear stated that they will refund the whole money to their customers and they will keep running the exchangers even after such big loss!


Thats the principle of strong exchanger and I believe that after this incidence if they really refund the money and keep going on then they will have more people coming onto their exchanger due to great positive publicity. This exchanger will actually have more user than the previous one because people feel secure when the words are very strong from the institutes.

This doesn't seem to be affecting the other crypto market, because if it would have been affecting already then we would have seen the down surge already.

I've heard of this news. And I should say that this news makes cryptocurrency look at pretty bad shape because of another fud rising. Because as we all know, fuds makes a coin or the whole crypto bleed. So is this mean for another bleed? Hmm, I don't know but millions of coins were stolen. Probably the nem will only bleed for a moment or what's worse is the whole crypto might bleed. But that's only a might not certain.

Japanese cryptocurrency exchange Coincheck one of the largest in the country.The  NEM  coins were stolen on Friday, Jan. 26.  https://cointelegraph.com/news/coincheck-stolen-534-mln-nem-were-stored-on-low-security-hot-wallet