$ 530 million was stolen from crypto-exchange due to security flaws

One of Japan's biggest crypto exchanges has become a victim of hackers because of its careless storage practice. According to official information, more than $ 500 million were stolen in NEM. The exact amount is $ 530 million. The news was announced late last night at a press conference held at the Thai Stock Exchange. According to official information, no other funds are stolen from the company's account. Later today, the company took additional security measures. This has led to a loss of confidence on the part of many investors in space.

CoinCheck Inc. has taken a series of steps that will improve security on the platform. The first step was to advise customers not to deposit NEM. This was followed by interruptions in all NEM deals, and the pulls of the affected crypt were blocked. For now, CoinCheck is only allowed to trade with Bitcoin, and payments by the company with credit cards and Payee are suspended.

Of course, such a development has frightened investors in the crypto. The reason for this is the hacking associated with one of Asia's biggest crypto exchanges. Many still remember the scandal related to Mt. Gox in 2013. Some of the biggest cryptos were affected by the bad news. The most severely affected is, of course, NEM. According to CoinMarketcap, NEM is the tenth crypto with the highest capitalization in the ranking. After the scandal, the price of NEM dropped from $ 1 to 77 cents, but the price recovered relatively quickly, currently costing the coin at around 85 cents.

The answer to the market is hardly surprising. The slightest hint of a security breach of a digital currency is enough to cause panic in many investors who are not familiar with the nuances of storing digital currencies. Crypto, by definition, oppose centralization. Most of today's digital-currency hacker attacks are being tempted by the large assets that are stored on central servers. CoinCheck Inc. admitted that they had used a "hot portfolio" to store such a huge amount of NEM. The company said it was "difficult to manage a cold portfolio." "

"If you do not have your own private keys, you do not have the crypto."

Satoshi Nakamoto, the man who created Bitcoin, designs the currency based on a block as a way of exchanging value without the need for third-party intervention. It is unacceptable for large investors to keep their digital assets in portfolios that do not have private keys. Even the simplest portfolio with many signatures could prevent such an event. According to many reports, only the hot portfolio of CoinCheck Inc was compromised. This was partially confirmed by Warren Paul Anderson, who is the product manager of Ripple's crypto on Twitter.

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