Jump to content
Sign in to follow this  
MOONWALKER

Coincheck Hack Loss Larger than Mt Gox

Recommended Posts

Do you think you have a bad day today :boredom:

Tokyo-based cryptocurrency exchange Coincheck has confirmed that it has suffered what appears to be the biggest hack in the history of the technology.

In a press conference at 23:30 JST (14:30 UST), the exchange’s president Wakata Koichi Yoshihiro and chief operating officer Yusuke Otsuka estimated its loss at 58 billion yen (approx. $533 million). According to Bloomberg, which attended the conference, 500 million NEM tokens were taken from Coincheck’s digital wallets.

Tweets by Nikkei appeared to indicate that the precise amount stolen may not be fully known until further checks have been carried out into the intrusion.

But though the exact dollar figure for the incident is hard to pin down (given the volatile nature of cryptocurrencies and the company’s lack of information), data suggests the figure is now at least over $400 million, factoring for a decline in the value of XEM, the NEM protocol’s token, following the incident.

At press time, the price of XEM was $0.85, down from a high of $1.01 today, according to data from Coinmarketcap.

Notably, the dollar amount stolen from Coincheck is likely greater than the amount stolen from Mt. Gox in 2014 (pegged at $340 million), though the impact on the cryptocurrency market will be much smaller given the immense increases in market capitalization since.

Rumors had been circulating about the theft since early this morning when Coincheck abruptly froze most of its services.

The firm announced on its website around 13:00 JST (04:00 UTC) that it had restricted deposits, trading and withdrawal of XEM, the token running on the NEM blockchain.

A wider suspension on withdrawals of all cryptocurrencies as well as Japanese yen was announced around 30 minutes later. In the following hour, trading of all cryptocurrencies was also restricted, except bitcoin. According to the latest update, other deposit methods including credit cards have also been stopped.

Coincheck is looking into compensating its customers, its executives also announced.

It was also revealed that Coincheck was not registered with Japan’s Financial Services Agency, but now plans to do so. Coincheck’s president said he “deeply regretted” the issue.

 

 

Share this post


Link to post
Share on other sites

Jeez. Somebody is retiring on that amount of money. I wonder how they pulled it off...

Hopefully some exchanges start using XRP trading pairs whilst being decentralized...such that the exchange wallet would essentially be your actual wallet. No more exchange acting as custodian and they still collect fees. Would be a sick project to do. 

Share this post


Link to post
Share on other sites

This is a statement from the exchange where I keep my xrp.

"Coin Storage

All new deposits go directly to cold wallets, with complete air-gap isolation from any online system.

The vast majority of coins are stored in cold wallets, with complete air-gap isolation from any online system.

A limited number of coins are stored in semi-cold wallets, on protected machines with locked drives.

Only the coins that are needed to maintain operational liquidity are stored in hot (online) wallets.

All wallets are encrypted."

I do all of my fiat banking online other than walking into my bank to make periodic deposits which I could also do via my smartphone if I choose. What's the big difference? I'm not being snarky,  I have a big stake in this, I am genuinely concerned.

Oh, and then there's this from the same exchange:

System Security

Our servers reside in locked racks, in a locked private cage, inside a top-tier professional data center: this means armed guards, video surveillance, retina scans, the works.

Data is encrypted wherever possible, and systems are both redundant and isolated from one another.

Data is replicated in real time and backed up on a daily basis.

We currently use Cloudflare, among other measures, for protection from Distributed Denial of Service attacks.

Our office is wired with separate networks for separate purposes. The system our agents use to access your uploaded account verification documents cannot be used for anything else. Support tickets are on a completely separate system, and so on.

Our staff has been thoroughly reviewed, and multiple sign-offs are required for anything remotely sensitive.

This is just what they are willing to share. They say they go above and beyond all this.

Edited by SlimTim

Share this post


Link to post
Share on other sites
3 hours ago, MOONWALKER said:

Notably, the dollar amount stolen from Coincheck is likely greater than the amount stolen from Mt. Gox in 2014 (pegged at $340 million), though the impact on the cryptocurrency market will be much smaller given the immense increases in market capitalization since.

 

https://blockonomi.com/mt-gox-hack/

Wasn't Jeb McCaleb, who is currently of CEO of that Moonshot rocket-ship called Stellar also the creator and developer of Mt. Gox in 2010.  The same Mt. Gox which was eventually hacked and 6 percent of all bitcoins in existence were stolen?  

Although Mt. Gox was sold to Mark Kapales in 2011 evidence shows  "Mt. Gox was already missing up to 80,000 bitcoins from its exchange even before Mark Karpelés purchased the exchange in 2011."  When Jeb McCaleb was still at the Reins of Mt. Gox.  Those missing 80,000 bitcoins would be worth about 1 billion dollars now.

Edited by Coinzee

Share this post


Link to post
Share on other sites
Just now, SlimTim said:

This is a statement from the exchange where I keep my xrp.

"Coin Storage

All new deposits go directly to cold wallets, with complete air-gap isolation from any online system.

The vast majority of coins are stored in cold wallets, with complete air-gap isolation from any online system.

A limited number of coins are stored in semi-cold wallets, on protected machines with locked drives.

Only the coins that are needed to maintain operational liquidity are stored in hot (online) wallets.

All wallets are encrypted."

I do all of my fiat banking online other than walking into my bank to make periodic deposits which I could also do via my smartphone if I choose. What's the big difference? I'm not being snarky,  I have a big stake in this, I am genuinely concerned.

Oh, and then there's this from the same exchange:

System Security

Our servers reside in locked racks, in a locked private cage, inside a top-tier professional data center: this means armed guards, video surveillance, retina scans, the works.

Data is encrypted wherever possible, and systems are both redundant and isolated from one another.

Data is replicated in real time and backed up on a daily basis.

We currently use Cloudflare, among other measures, for protection from Distributed Denial of Service attacks.

Our office is wired with separate networks for separate purposes. The system our agents use to access your uploaded account verification documents cannot be used for anything else. Support tickets are on a completely separate system, and so on.

Our staff has been thoroughly reviewed, and multiple sign-offs are required for anything remotely sensitive.

This is just what they are willing to share. They say they go above and beyond all this.

Can you share the coin storage that you are using?

 

Share this post


Link to post
Share on other sites

Too bad there isn't a way to encrypt each drop, coin, satoshi so each has a unique signature and, in theory, could be tracked, much like marked bills. 

Edited by TheXRPer

Share this post


Link to post
Share on other sites
6 minutes ago, TheXRPer said:

Too bad there isn't a way to encrypt each drop, coin, satoshi so each had a unique signature and, in theory, could be tracked, much like marked bills. 

Bu muh anonnymis creepto currenceeee :'( 

Share this post


Link to post
Share on other sites
4 hours ago, TheXRPer said:

Too bad there isn't a way to encrypt each drop, coin, satoshi so each has a unique signature and, in theory, could be tracked, much like marked bills. 

Maybe regulation will settle these problems in time?  Xrp has the best papers regarding regulations ?That wouldn't be bad imho. Any thoughts?

Share this post


Link to post
Share on other sites
10 hours ago, Coinzee said:

https://blockonomi.com/mt-gox-hack/

Wasn't Jeb McCaleb, who is currently of CEO of that Moonshot rocket-ship called Stellar also the creator and developer of Mt. Gox in 2010.  The same Mt. Gox which was eventually hacked and 6 percent of all bitcoins in existence were stolen?  

Although Mt. Gox was sold to Mark Kapales in 2011 evidence shows  "Mt. Gox was already missing up to 80,000 bitcoins from its exchange even before Mark Karpelés purchased the exchange in 2011."  When Jeb McCaleb was still at the Reins of Mt. Gox.  Those missing 80,000 bitcoins would be worth about 1 billion dollars now.

He was long gone from Mt. Gox when it was hacked.  In addition to Stellar Lumens, he created another blockchain project you may have heard of...

 

 

Share this post


Link to post
Share on other sites

Create an account or sign in to comment

You need to be a member in order to leave a comment

Create an account

Sign up for a new account in our community. It's easy!

Register a new account

Sign in

Already have an account? Sign in here.

Sign In Now
Sign in to follow this  

×
×
  • Create New...