ruletheworld
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Activity: 1386
Merit: 1045
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January 29, 2018, 10:00:40 AM |
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Japan’s Financial Regulator Responds To Coincheck US$530M Hack https://coinjournal.net/japans-financial-regulator-responds-coincheck-us530m-hack/Japan’s Financial Services Agency (FSA) plans to take administrative actions against hacked cryptocurrency exchange Coincheck after the company announced the loss of 523 million units of NEM cryptocurrency (about US$530 million) from a hack. The FSA suspects that a lack of proper security measures allowed hackers to steal a record haul of cryptocurrency on Friday, according to a report by Nikkei Asian Review. The regulator will issue a business improvement order to Coincheck later on Monday and order the company to strengthen its safeguards to prevent a recurrence, Japan’s chief cabinet secretary Yoshihide Suga told a regular news conference. The theft is said to be the biggest-ever losses of cryptocurrency to hackers. Coincheck halted withdrawals and trading in all cryptocurrencies on Friday, except bitcoin, and said in a statement that it would return the stolen money to the roughly 260,000 affected users. According to the announcement, the refund will be done using the company’s own capital. No date has been set yet for the payments or for a restart of trading on the platform, Coincheck’s chief operating officer Yusuke Otsuka told reporters. Tracking the stolen funds NEM Foundation interview Coincheck hack NEM.io Foundation vice president Jeff McDonald interview with Inside NEM, Youtube The NEM.io Foundation‘s vice president Jeff McDonald said in a statement on Sunday that the organization was “working on solutions to do the most we can to help Coincheck and also ensure the NEM community is protected.” “We are currently reaching out to exchanges and exploring three different options,” McDonald said. “We also have a full account for all of Coincheck’s lost NEM cryptocurrency (XEM) on the blockchain. At this time, the hacker has not moved any of the funds to any exchange, nor to any personal accounts of NEM community members.” The foundation said it was developing an “automated tagging system” to follow the stolen funds and tag any account that receives the tainted money. In an interview with Inside NEM, McDonald said that when the stolen funds were moved out of Coincheck it appeared that the funds were stored in a hot wallet that had an exposed API and probably an exposed private key. Coincheck should have used NEM’s multi-signature contract and cold storage to secure the funds, he said. McDonald added that a NEM hard fork was out of the question. “A hard fork is not an option. The NEM protocol worked exactly as it was designed to work. It’s a terrible thing but I think if the funds were going to be returned that it would have to be the hacker returning the coins to Coincheck,” he said...... Sounds like a well-reasoned approach. The regulators want to make sure the exchange has its security in order, as they should. |
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Unlike traditional banking where clients have only a few account numbers, with Bitcoin people can create an unlimited number of accounts (addresses). This can be used to easily track payments, and it improves anonymity.
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moli1
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January 29, 2018, 10:57:18 AM
Last edit: January 29, 2018, 11:16:17 AM by moli1 |
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Japan’s Financial Regulator Responds To Coincheck US$530M Hack https://coinjournal.net/japans-financial-regulator-responds-coincheck-us530m-hack/Japan’s Financial Services Agency (FSA) plans to take administrative actions against hacked cryptocurrency exchange Coincheck after the company announced the loss of 523 million units of NEM cryptocurrency (about US$530 million) from a hack. The FSA suspects that a lack of proper security measures allowed hackers to steal a record haul of cryptocurrency on Friday, according to a report by Nikkei Asian Review. The regulator will issue a business improvement order to Coincheck later on Monday and order the company to strengthen its safeguards to prevent a recurrence, Japan’s chief cabinet secretary Yoshihide Suga told a regular news conference. The theft is said to be the biggest-ever losses of cryptocurrency to hackers. Coincheck halted withdrawals and trading in all cryptocurrencies on Friday, except bitcoin, and said in a statement that it would return the stolen money to the roughly 260,000 affected users. According to the announcement, the refund will be done using the company’s own capital. No date has been set yet for the payments or for a restart of trading on the platform, Coincheck’s chief operating officer Yusuke Otsuka told reporters. Tracking the stolen funds NEM Foundation interview Coincheck hack NEM.io Foundation vice president Jeff McDonald interview with Inside NEM, Youtube The NEM.io Foundation‘s vice president Jeff McDonald said in a statement on Sunday that the organization was “working on solutions to do the most we can to help Coincheck and also ensure the NEM community is protected.” “We are currently reaching out to exchanges and exploring three different options,” McDonald said. “We also have a full account for all of Coincheck’s lost NEM cryptocurrency (XEM) on the blockchain. At this time, the hacker has not moved any of the funds to any exchange, nor to any personal accounts of NEM community members.” The foundation said it was developing an “automated tagging system” to follow the stolen funds and tag any account that receives the tainted money. In an interview with Inside NEM, McDonald said that when the stolen funds were moved out of Coincheck it appeared that the funds were stored in a hot wallet that had an exposed API and probably an exposed private key. Coincheck should have used NEM’s multi-signature contract and cold storage to secure the funds, he said. McDonald added that a NEM hard fork was out of the question. “A hard fork is not an option. The NEM protocol worked exactly as it was designed to work. It’s a terrible thing but I think if the funds were going to be returned that it would have to be the hacker returning the coins to Coincheck,” he said...... Biggest crypto hack ever Loses more than $$500 Million,coincheck subsequently restricted withdrawals of all currencies, including yen, and trading of cryptocurrencies other than bitcoin. coincheck management said in the press conference that it held the NEM coins in a "hot" wallet, referring to a method of storage that is linked to the internet. In contrast, leading U.S. exchange Coinbase says on its website that 98% of its digital currency holdings are offline, or in "cold" storage. In another high profile case, Tokyo-based Mt. Gox filed for bankruptcy in 2014 and said it lost 750,000 of its users' bitcoins and 100,000 of the exchange's own. The company was the largest bitcoin exchange at the time. |
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Nistap
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Activity: 63
Merit: 0
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January 29, 2018, 12:13:30 PM |
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Hopefully this theft may be a wake up call for other exchanges that might have not got their security up to date. I wouldn't have expected this to happen with such a large exchange.
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codemanX
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January 29, 2018, 03:23:27 PM |
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Even crypto n00b knows that large sum must be stored in the cold one.
Unfortunately there are always people saying that it is safe enough to keep the coins on exchanges, I have recently responded to such a guy ... a Full Member, nearly Senior Member!: https://bitcointalk.org/index.php?topic=1926269.msg28661141#msg28661141xenon131, I just saw you are one of us unfortunates who was just about to reach the next rank and will probably need a few weeks or months longer due to the new Merit system.  |
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hamzatu
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Activity: 70
Merit: 10
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January 29, 2018, 10:46:55 PM |
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The ability to instantly track coins. Developed in only hours after the hack.  |
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jkoil
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January 29, 2018, 10:55:05 PM |
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The ability to instantly track coins. Developed in only hours after the hack. I guess it was not developed during these days. Similar trackings have been practised already in the sockpuppet chase ... |
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am_os
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Activity: 1
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January 29, 2018, 11:35:15 PM |
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Hi NEM Global, Sorry to get a bit off-topic about the recent hacks; but it would be brilliant if you could cast your eyes toward supporting a real world NEM-powered company looking for community support right now. We're called Choice, and we're building a liberated payments protocol designed at greatly reducing transaction fees for merchants, and replacing payments infrastructure with a simple NEM-powered system that provides direct, realtime settlement. Please check out our community proposal below, any comments and questions are welcome, and please feel free to join our Telegram Group to chat to us directly. We will let everyone know when voting is open. https://forum.nem.io/t/community-fund-proposal-choice-a-choice-to-pay-is-now-a-choice-to-make-a-difference/13380https://t.me/choicetopayWhat's exciting is that Choice has received huge support from members of the NEM Foundation, the founders of Copyright Bank and Luxtag, all the banks in New Zealand, and the local Financial Monetary Authority, Inland Revenue Department, and Reserve Bank of New Zealand. Cheers NEM Community, we look forward to greatly increasing tx XEM throughput and bringing social impact to the NEM blockchain! -- Ossie Amir Choicechoicetopay.com |
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serian
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January 30, 2018, 01:22:47 AM |
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So will they return NEM for coincheck users? If they find NEMs I think they can easily find out hacker's identity because to withdraw such a big amount money or BTC won't be possible without account verification, no?
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nikochanbtc
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Activity: 154
Merit: 0
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January 30, 2018, 01:26:31 AM |
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seems nem is a real good project , so regret to miss the nem boat , will buy some in future , it is too expensive now.
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LemonAndFriesOne
Legendary
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Activity: 1050
Merit: 1000
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January 30, 2018, 05:35:52 AM |
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seems nem is a real good project , so regret to miss the nem boat , will buy some in future , it is too expensive now.
You will most likely pay a whole lot more in the future. Get in while it's still dipping. |
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ruletheworld
Legendary
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Activity: 1386
Merit: 1045
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January 30, 2018, 05:46:23 AM |
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Even crypto n00b knows that large sum must be stored in the cold one.
Unfortunately there are always people saying that it is safe enough to keep the coins on exchanges, I have recently responded to such a guy ... a Full Member, nearly Senior Member!: https://bitcointalk.org/index.php?topic=1926269.msg28661141#msg28661141xenon131, I just saw you are one of us unfortunates who was just about to reach the next rank and will probably need a few weeks or months longer due to the new Merit system. Storing on exchanges is terrible advice, especially for proof of stake coins like NEM. You can be secure AND earn some NEM storing it in your own Nano Wallet/Ledger. |
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serian
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January 30, 2018, 07:18:54 AM |
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seems nem is a real good project , so regret to miss the nem boat , will buy some in future , it is too expensive now.
You will most likely pay a whole lot more in the future. Get in while it's still dipping. I wish I bought more XEMs while it was around 20 cents. Even though there were a lot of FUD and this exchange hack XEM $ price is pretty stable. |
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Neversettle
Member
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Activity: 308
Merit: 13
ZetoChain - ACCELERATING BLOCKCHAIN FOR THE SUPPLY
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January 30, 2018, 07:52:53 AM |
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So will they return NEM for coincheck users? If they find NEMs I think they can easily find out hacker's identity because to withdraw such a big amount money or BTC won't be possible without account verification, no?
The only one able to return the XEM is the hacker himself. There might be a chance that the hacker is caught. But might just have vanished after all |
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Melody Jelly
Member
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Activity: 238
Merit: 10
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January 30, 2018, 08:05:27 AM |
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Hoping that the price would be stable . NEM platform would be in full swing and should dapps adapt its platform , this would drive developers swoop down and use it.
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nemwanderer
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January 30, 2018, 02:22:42 PM |
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Not fun being a crypto investor these days. When does the ship turn and we’re back in a hull market?
Any clue why there’s been such relentless selling flow the last few weeks?
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Soloha
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Activity: 9
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January 30, 2018, 05:01:28 PM |
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Not fun being a crypto investor these days. When does the ship turn and we’re back in a hull market?
Any clue why there’s been such relentless selling flow the last few weeks?
Laws of the market ... After the trend moves up, the correction goes down. |
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fragout
Legendary
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Activity: 1279
Merit: 1018
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January 30, 2018, 05:22:32 PM |
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Not fun being a crypto investor these days. When does the ship turn and we’re back in a hull market?
Any clue why there’s been such relentless selling flow the last few weeks?
This could be the new word for Bull !! . HODL for the HULL |
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nemwanderer
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January 30, 2018, 06:23:17 PM |
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Not fun being a crypto investor these days. When does the ship turn and we’re back in a hull market?
Any clue why there’s been such relentless selling flow the last few weeks?
This could be the new word for Bull !! . HODL for the HULL Haha, autocorrect. My worry is where’s the next marginal buyer? Who walks in at current prices and buys size? That’s what makes me think the show could be over. It’s been a nervous few weeks... |
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jkoil
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January 30, 2018, 07:51:12 PM |
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Not fun being a crypto investor these days. When does the ship turn and we’re back in a hull market?
Any clue why there’s been such relentless selling flow the last few weeks?
Ain't no fun ... http://acdc.wikia.com/wiki/Ain%27t_No_Fun_(Waiting_Round_to_Be_a_Millionaire) Someone could change the words; replace sound with ICO, etc. ... So if you've got the money, we've got the ICO You put it up and we'll put it run If you got the coin, we got the chain ... |
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