Japanese Cryptocurrency Exchanges Coincheck Hacked; Hackers Stole $534 Million Worth of Bitcoin

japanese cryptocurrency exchanges coincheck hacked

Unidentified hackers stole $534 million worth of cryptocurrencies, ($420M of NEM tokens and $114M of Ripples) from Tokyo-based cryptocurrency exchange Coincheck Inc. 

Japan’s financial regulator said on Monday it would inspect all cryptocurrency exchanges and ordered Coincheck to get its act together after hackers stole $534 million worth of digital money from its exchange in one of the biggest cyber heists on record. 

They had detected unauthorized gaining access to its system at Friday 3 A.M. In response, they suspended all deposit, withdrawal. sales and purchases of NEM which resulted in 16.5% drop in NEM coin value as well as the withdrawal of other cryptocurrencies and Japanese YEN it holds.

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Nicholas Colas, co-founder of DataTrek Research told CNBC that he thinks the attack does highlight that the industry still has a long way to go in terms of basic issues of security.

Image via CNBC | Getty Images
On January 27, 2018, Coincheck president Koichiro Wada (L) bows in apology at the end a press conference in Tokyo