TOKYO: Japanese digital currency exchange Coincheck suspended deposits and withdrawals after record-breaking $534 million theft through a hack was discovered.
Hackers penetrated the Coincheck network accessible through internet called “hot wallet”. The network breach came in at 02:57 AM Japan Time on Friday, (10:57 PM Pakistan time on Thursday).
A Coincheck statement informed that the breach was discovered around 8 hours later. Coincheck is currently assessing the loss while trading only in Bitcoin. Transactions in all other currencies remain suspended until further notice.
The company also stated that they have traced the digital footprint of this hack and will be pursuing the case. They stated that all in power will be done to compensate the affected.
Coincheck chief operating officer Yusuke Otsuka speaking in a presser revealed that 532 million NEMs were sent from Coincheck account. NEMs are currently the 10th largest crypto-currency used in the cybersphere.
World Record of Digital Currency Theft
MtGox was the largest hack since 2014 until the latest NEMs theft. Tokyo based digital currency exchange had lost US dollar 400 million. The current hack now holds the world record for the largest digital currency theft in the history.
Japanese Law on Digital Currency Theft
A system was introduced in Japan after 2014 MtGox hack to keep digital currency exchanges in check. Experts are of the view that now that the digital world echoes of another large-scale hack, the response from Japanese regulatory authorities might adopt a stricter policy. The only hurdle in the say is a high level of trade in crypto-currencies within the country.
What is Digital Currency Exchange?
A digital currency exchange or a crypto-currency exchange is a marketplace allowing trade between virtual currencies such as Bitcoin and conventional money such as United States Dollar (USD). The companies are allowed trading in all directions such as conversion from; Bitcoin to USD, USD to Bitcoin, Bitcoin to other crypto-currencies and vice versa.
Where do NEM and Choincheck stand?
NEM is the 10 largest crypto-currency currently at the rate of 1.05 NEM for 1 USD. The currency stands stable after the hack. Choincheck on the other hand yet to determine its loss after the incident. Located in Tokyo Coincheck had 71 employees until August 2017.