Crypto News: Coincheck gets bamboozled for $534m!
In this article I will explore one of the greatest robberies in history. We have certainly entered a new age in which bank robberies with guns and masks have been transformed to complex ip routes spanning several countries and untracable network configurations.
What this all amounts to is that one of Japan's largest digital currency exchanges appears to have lost $534m (£380m) worth of virtual assets in a hacking attack on its network.
After Coincheck realized they had been violated, deposits were frozen along with withdrawals for every cryptocurrency except for Bitcoin. Then they looked into their significant losses in NEM, a lesser-known currency.
Coincheck may be unable to reimburse the funds lost on Friday, a representative told Japanese media. If the theft is confirmed, it amounts to the most monumental theft ever involving digital currency.
Another Tokyo exchange, MtGox, collapsed in 2014 after admitting that $400m had been stolen from its network. The stolen Coincheck assets were said to be kept in a "hot wallet" - a part of the exchange connected to the internet. That contrasts with a cold wallet, where funds are stored securely offline.Coincheck says it has the digital address of where the assets were sent.
From my experience with cryptocurrencies this is bad news. I don't think there will be any success in recovering the funds so in that respect this is really bad news for both the exchange and its customers. In an unregulated area like the cryptocurrency space there are few protections so hackers are extremely happy about the current state of affairs.
What do you guys think about this hack? Am I wrong, is there possibility of recovery of these funds? What effect do you think this theft will have on the overall industry?
Please leave thoughts below!
Thanks for dropping by @Techblogger.
Source:
Coincheck: World's biggest ever digital currency 'theft' - BBC
Image Source:
BBC
Time to get those funds out of exchanges, boys.
excellent idea ;)
Very great post, I think that will make investors & traders very careful using exchanges.
Holding in cold is the safest as I know till now.
Funds assurance & decentralized exchanges are what we gonna see in the market in a while.
thank you for the good content :)
konten yang bagus tman ku
I honestly don't think they will be able to recover all of the funds. Just shows that you should never keep your crypto on an exchange. Its literally a gimme and an easy hack for almost all hackers, even for people who have 2FA. I think it will have a negative effect on the overall industry, but I don't think it will stop Bitcoin from uptrending these next few months, especially with the Robinhood 1 million person waitlist coming up.
It’s not written above but I thought it should be known that Coincheck will repay all 260,000 users impacted by the theft of NEM coins, at a rate of ¥88.549 (81 U.S. cents) for each coin.
Thankfully, the overall crypto market has crossed $500 billion in cap and this theft is worth just a little percentage of the whole. Otherwise, $500+ million theft is a BIG theft and it could have triggered a BIG crash which, thankfully again, hasn't occured.
It's an intriguing question on how to do they do such heinous hacks
They should do some good work their knowledge instead of hacking and stealing money from people who work hard to earn it
🤓🤓🤓
Store your crypto in safe wallets and NEVER exchanges
Fantastic friend very interesting post I love congratulations
Some secret there is after fund the world of cryptocurrency gives a lot and is used by those who know more about the subject.