Coincheck Loses $400M Cryptocurrency to Hackers

Coincheck Loses $400M Cryptocurrency to Hackers
One of Japan’s largest cryptocurrency exchanges, Coincheck, has suffered a breach, resulting in the loss of approximately $400 million.

(CCM) — Tokyo-based cryptocurrency exchange, Coincheck, has confirmed that it has lost 500 million tokens of the NEM currency to hackers. The loss is expected to be worth approximately $400 million, although it is tricky to estimate the correct valuation due to the ever-changing rates of cryptocurrency.

According to a report by Bloomberg, Coincheck's co-founder, Yusuke Otsuka, stated that the hackers infiltrated their network on Jan. 25. Roughly eight hours after hacking into Coincheck's system, the hackers initiated the unauthorized transfer that was detected by the company later. The stolen 500 million NEM tokens were stored in the Internet-connected “hot storage” at Coincheck. After the attack, the company froze almost all trading and withdrawals.

The hackers’ illicit move is said to have impacted around 260,000 users, but Coincheck assures them that it will reimburse all those affected. The company is currently investigating the matter and trying to track the account to where the funds were transferred.

Image: © Julia Tsokur -