Japanese crypto exchange set to repay victims of a $400 million hack

Japanese crypto exchange set to repay victims of a $400 million hack

It experienced 20-fold rise in its value in December as compared to its value in early 2017. South Korea, Japan, China, and other Asian countries became one of the biggest markets in the world for cryptocurrencies. Another major exchange, Bitfinex, repaid customers who were affected by $72 million hack in August 2016.

The Financial Services Agency (FSA) said on Monday it would inspect all exchanges and put pressure on Coincheck - a cryptocurrency wallet and exchange service - after digital money worth $534m (£379m) was stolen by hackers from its exchange. Other cryptocurrencies also took a hit, with bitcoin initially dipping 7pc against the dollar on the day of the hack.

This theft highlighted how vulnerable cryptocurrency exchange systems still are and is maybe a sign that financial watchdogs need to keep a closer eye on them. And adding that they will carry out repayment from their own funds.

Coincheck is not a registered operator but has applied to the agency for a license as an exchange. They may even push some investors toward peer-to-peer methods of trading that don't rely on centralized platforms.

In Japan, the Financial Services Authority (FSA) rapped Coincheck and ordered it to submit a report about its security operations by February 13.

Coincheck said it acknowledged that the breach had caused "immense distress" to customers, exchanges and participants in the cryptocurrency sphere, and said it offered its "deepest and humblest apologies to all of those involved".

Japanese exchange Coincheck has been hacked. Many exchanges operate with 90% of their holdings in cold storage to ensure that the majority of the funds they hold are safe in the event of an attack.

The incident is a reminder to the growing number of people who are putting money into digital currencies, either to use for payments or to hold as a hedge against a decline in the value of fiat currencies like the USA dollar. "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", the curt Coincheck statement advised.

The massive theft of digital money at cryptocurrency exchange Coincheck was due to sloppy management, which left a huge amount of customers' money at risk at Japan's second-largest cryptocurrency exchange. Though the future of Coincheck is yet unclear, it stated that it will restart trading sometime soon. At the same time, the exchange is working closely with the NEM team to trace and freeze the stolen assets.

Related news:

Hot News

isis-killer-beheading-video-story-top Moon to stage triple show tomorrow
Jan 31, 2018 - 17:35
We see the challenge you've laid down - staying up or waking early - and we're prepared to meet it, with enthusiasm and awe. The Blue part comes from this being the 2nd full moon for the month of January as we also had a full moon on New Years Day.

isis-killer-beheading-video-story-top What is, Giants upset in Super Bowl XLII used as Jeopardy answer?
Jan 30, 2018 - 13:03
Two of the Patriots most important players are getting healthier as they prepare to head to Minneapolis for Super Bowl week. There's still a week remaining before the game, so I would expect the New England money to start coming in at some point.

isis-killer-beheading-video-story-top Virginia holds off Duke in ACC clash
Jan 29, 2018 - 19:03
Duke's starting five is the best starting five in the country; I fully expect all five of these players to be first-round picks . No. 4 Duke found itself tangled in another tight battle with No. 2 Virginia at Cameron Indoor Stadium on Saturday afternoon.

isis-killer-beheading-video-story-top Snooze, don't lose - De Bruyne enjoys Manchester City being boring
Jan 29, 2018 - 17:38
Bennett was booked and then eventually sent off for collecting another yellow card for a foul on Diaz in the second half. That's why you are here and why I'm here. "That's why football is nice, everybody can play", he said.