The Japanese crypto exchange Coincheck, one of the largest in the country, was the victim of a massive hack, which has led to a loss of 523 million NEM Coins, which are about 429,2 million Euro value.

The Coins were on the 26. January stolen at 3:00 PM local time, via several unauthorized transactions from a Hot-Wallet.

as a result of the Hacks Coincheck has called a press conference live streamed by the platform, Niconico, in order to inform about what is happening and what to expect for steps.

NEM in a Hot Wallet stored, private key stolen

The Hack only affected the NEM. Other cryptocurrencies, including Ripple (XRP), have not been stolen, as predicted by Cointelegraph has reported.

According to representatives of the stock exchange, the hackers have managed to gain the private key for the Hot Wallet, in which the NEM-Coins were kept, and have had the opportunity, the assets clear.

the whole of The stolen money belonged to the clients of the stock exchange. The “improper” movement of money has been displayed by Coincheck with the Japanese financial services authority and later on the same day at the police station.

Shortly after this breach, the company has stopped all withdrawals on the page, in the hope to prevent any further damage to this asset. On the question of whether the company “would at least” allow for the Lifting of Fiat money, replied, Coincheck, that would only be possible if you have agreed on the best next step.

It was known that the property was kept in a simple Hot Wallet instead of in a much safer Multisig Wallet.

The representatives of Coincheck have claimed that the security on the stock exchange, depending on the Coin differ from each other.

Other crypto-currencies on the page are currently stored in Multisig Wallets, but in the NEM that was not the case. Of media, harassed, stressed that the “security is not kept measures low”, but the lack of protection by Multisig for NEM suggests that the opposite was the case.

The company has made it clear that it uses a different Wallet types for the storage of various investment jects. Especially Bitcoin and Ether are kept in Cold-Storage Wallets where Bitcoin has a Multisig address. Ether will not be kept “in the face of its kind” in a Multisig Wallet.

According to the opinion of the company, more than half of the 80 full-time employees of Coincheck of security systems.

What happens next?

Furthermore, it has claimed Coincheck that you know the address, where the stolen NEM are currently kept by the hackers, and you hope that you can identify the culprits.

has shown, While the company can not currently say how many users are affected, it is ready to refund the lost money.

On the question of whether the company will continue to offer its service or insolvency’m going to sign up, replied Coincheck that the plane “in principle” to continue.

Despite the willingness of the company to refund the money, is still being discussed about an approach to the Situation. According to the press conference, the “Worst Case scenario” would be that the money can never be refunded.

On the question of whether or not the company have to tell the customer what to answered, Coincheck, that you regret the incident “deeply”.

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He is a freelance journalist who has actively worked on various environmental issues. He had covered the Clean Water Act amendments and the Superfund legislation which ultimately became the basis for the Clean Air Act which was promulgated in 1990. After that, he also covered the Food Quality Protection Act which was promulgated in 1996. As a freelance environmental reporter he also delved into the oil issue in North Dakota which altered the energy portfolio of the nation. He is also passionate about the various climate changes occurring around us and has reported about the harmful effects of global warming on the environment.