Coincheck Exchange Hacked: Biggest Crypto Theft in History

Coincheck, the largest exchange in Japan, has been hacked, reportedly losing 530+ million dollars worth of NEM. According to Nikkei, they have reported the transfer to the Financial Services Authority and the Police. They have frozen all withdrawals at this time.

An earlier blog post announced the freeze on NEM deposits:

“Depositing NEM on Coincheck is currently being restricted. Deposits made to your account will not be reflected in your balance, and we advise all users to refrain from making deposits until the restriction has been lifted.’

Shortly thereafter, purchase and sales of NEM were halted, followed by several announcements of all withdrawals and movements of any kind being frozen.

At 2 pm UTC the NEM Foundation president Lon Wong has confirmed that the hack, calling the event ‘the biggest theft in the history of the world’.

Coincheck has expressed their intent to compensate their customers, but the practicality of this remains to be seen: (translated from Japanese via Google Translate)

History

Coincheck is a crypto wallet and exchange solution based in Tokyo and was founded by Koichiro Wada and Yusuke Otsuka in 2014. It specializes in bitcoin/ether exchange as well as fiat currencies in Japan.  As of August 2016, the exchange services over $160 million in transactions per month. More than 2200 merchants have used their bitcoin payment offering in Japan only.

In 2016 the entertainment company DMM.com opted to use Coincheck’s crypto processing solution, bringing a userbase of more than 19 million. Coincheck also has with Chinese, Hong Kong, and Taiwan investors through SEKAI in order to support the purchase of real estate using Bitcoin.

Isaac Rockett

Editor in Chief. Blockchain enthusiast. Maker. Tech aficionado. I love coffee and camping, cars, bikes, and beer. Not in that order or combination.

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