Bitcoin Forum

Tokyo based cryptocurrency exchange "coincheck" just confirmed that they had more than 500 million dollars stolen in Ripple and Nem cryptocurrencies.
China and shouth korea is ok, but what happens when Japan starts to face issues regarding crypto?

Source? That seems like a huge hack and in order to believe the biggest hack in history I need some sort of source on it. Insane if it happened, bullocks if it didn't.

This is the problem with Coincheck. But I think the losses will be met because it is the Japanese exchange.

All I can find online is news of Coincheck suspending trading since today, but no real explanation. The speculation seems to be hackings, but we should wait for the announcement tomorrow.

Ripple and NEM were the biggest losers, but it doesn't make sense a hack would cause them to drop. Shouldn't they basically go higher (in the end) if hacked crypto is taken out of circulation? I'm guessing it would be easy to track and blacklist them.

NEM I can sort of get since it has a lot of Japan backing, but surely the investors there know this is a hack on an exchange and nothing to do with bad security in crypto itself?

https://cryptonews.com/news/coincheck-hacked-more-than-500-million-xem-stolen-1093.htm

This site talks about it and it seems there are a lot of restrictions being put in place in order to withdraw or to deposit with those coins so it is obvious something happened, lets wait to get a full confirmation but the news seems to be correct at least for the moment.

yeeey great time to buy nem! wait to hit bottom :)

This is huge amount, $500 million, this will surely have huge impact on the price of both Ripple and NEW because I expect those tokens to be moving in coming weeks, exchanges need to tighten up their platform, it is too early

No mention of XRP, the 500M XEM already covers the full amount,
so I assume OP has misread or maybe mistaken XEM as XRP because they are not familiar with it?

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Holy f*ck though, that is a big sum to lose.

half a billion this is huge!!

This may impact even Bitcoin price, since sooner or later everybody tries to convert to fiat.
I was even thinking if today 10% dump was not caused by this, since I didn't have the time to read about the traces of those coins (if any).

Oh my... Just saw this in the news myself. This is a reminder as to why one should not keep large sums of crypto on exchanges. It is not ideal for those who do day trading, but still it seems many people just buy and leave coins on an exchange  :(

How the hell did they manage to lose that much??? You would be sure they have EXTREME safety precautions when operating with such amounts. Multiple layers of hot and cold and ICE COLD wallets....

In a Telegram group I read that it was around 125.000.000 XRP that was also stolen from them

Was there a source given with that info?
CoinDesk (https://www.coindesk.com/coincheck-confirms-crypto-hack-loss-larger-than-mt-gox/) cites Bloomberg as source and provides the following numbers:
$533M stolen in total, and 500M XEM (already worth over $500M if we use todays starting price).

125M XRP added to that would mean the total is a lot higher, which seems unlikely, given todays press conference by coincheck.

Seems that's why NEM fell so much.

That's right, but that funds were placed in many different trading deposit accounts of course.
And medium sum may be not so huge, you know.
For example 500 000 users with 1000$.
D'you remember that 250 000 users were registered every day at Bitfinex before it close registrations? :)

False.

They did not stole Ripple, only NEM.

And that was because of their lack of security, not because they just were hacked.

Maybe that was some kind of "exit" scam like may other exchanges did before in order to say that they were "hacked" while they stoled all that money.. Yeah, right, just a "hack"..

Maybe you're right.
It's unbelievable.. if so huge sum were stolen by hackers. If so they are genius but it seems to me ... perhaps some of the staff can help they.  Anyway when you have so huge funds you must spend more sum to IT security..... even this forum spend money for security bounty. :)

https://news.bitcoin.com/coincheck-halts-operations-amidst-hacking-rumors-after-723-million-withdrawn/

It's still wild wild west out there. On exchanges they don't care enough about security.
I expect to see some kind of insurance model from exchange in future because of this attacks.
Bank insurance is something good. That insurance could be and probably will be paid by us in some smaller percentage,
but it would be safer than now.

I begin to think that is the destiny of all exchanges to be hacked, soon or later.

It will be so unprofitable to insure big crypto exchange. :)
As you know almost every month one or two of thay hacked.
May be in future when insurance companies try to calculate his profit and fees for it.

I do not understand how they are hacked. I think someone is hacking inside. cold wallet hacking must be difficult. i do not believe them.

Apparently hacked their wallets are not on stock,and what third-party.Now the hackers are very actively hunting for such large whales as a stock exchange.

There is no a lot of explanation about that, but it seems this hack already planned from inside. How the security can be broken by the hacker. coincheck previously stated that if the funds go to the somewhere and it's untraceable.


How more centralized exchange site goes crap this time.
I was expecting about the Japanese official will try to investigate it with some police in the future.

I think there something at the back of this. Maybe hack or not if you are using like this big exchange you should not put or store your coins in the exchange. and also heard that 100K xrp were transferred to a private wallet?HMMM

well wondering that it is another japanese exchange?

seems Nem gonna take a beating for that instead of the exchange. But looking back...MT gox CEO is now insanely rich too for cheating all his costumers.

Guess thats the new way if the exchange does not earn quick enough.

This is such bad news. I hope investors could somehow get their money back.

nem says they wernt using multi sig contracts that they offer to protect the coins meaning they had poor security there own fault.

These big hacks are not as simple as they appear to be and most of the times, the company or the insiders are involved in such a crime. I have firm believe on this. But I like the advice to not keep the coins at exchange or it should be more than one. My sympathies are with those who suffered from a great loss. But whoever has got hands on those 100 ripples, going to be a millionaire in future.

It has been mentioned many times that no exchange is safe, no matter how good is their security they are big targets and sooner or later they are going to lose money to hackers or to their own employees, if you are a day trader then you have no option but to have your funds there but if you are a holder you will be better by having a hardware wallet or a paper wallet.

BREAKING: Coincheck says it will compensate all losses to its NEM holders at a rate of 88.549 JPY ($0.81) per each coin. Says it is using its own capital to reimburse clients. Exact date of reimbursement not yet decided.

https://www.reddit.com/r/CryptoCurrency/comments/7tdg3y/breaking_coincheck_says_it_will_compensate_all/

Biggest hack indeed. I would now wonder how secure our funds are on exchanges. If only the exchanges fees are not downright ridiculously expensive, I would rather put all my coins on an offline wallet.

Crazy to see ow big amounts are getting stolen in crypto. It really scares me whe I think about my funds!!! I hope you guys store your coins on a coldwallet to be safer against hacker! I mean no one here is holdng 500 million but hackers are also happy with small money!

Now that is something. My jaw dropped after reading out your comment because I think, it really takes a lot of guts and courage to do something like this. Huge respect for coincheck but honestly, I am a little bit confused. I wonder whether I should admire coincheck or doubt its kind caring nature.

How are they going to compensate such a big hack? Many question are coming from many corners of my mind. Have they caught the intruders? What is really going on here?

It is likely they are going to pay that out of their own pocket, after all exchanges earn a fortune so it is not like they are going to lose that much money, they realize that if they do not do that they are going to lose their customer base and that is going to be more costly in the long run, also this adds an assurance to the traders, if the exchange gets hacked and it is not your fault they have your back.

Since when have they become so noble and generous? And how the heck are the even supposed to compensate everyone’s loss? I don’t know but I am not having a very good feeling about this. I do understand that it is important to keep customer in their place but still, it is a very big move. Anyways, the good thing is, users are going to get back what really belongs to them.

It is not about being noble it is just a business decision, why do business give free stuff to their clients? Why banks give out some small gifts by opening an account with them? Why when you go to the supermarket you get free samples of the products? They are expecting that by doing that they will get more clients, it does not seem complicated to me.