Cryptocurrency Exchange Hacked In Japan , $5.3 Billion NEM Missing

According to executives at CoinCheck, Japan's leading cryptocurrency exchange, the platform has stolen NEMs worth more than $ 530 million.

MineCC, Japan-based e-money analyst, reports that during a formal public meeting, CoinCheck executives admitted all the money stored in the hot-wallet was stolen by a group of unnamed hackers.

Unlike a secure and offline cold wallet, you can access the hot wallet if the server is hacked. As a result, most large cryptocurrency exchangers in the industry only keep a small portion of their funds in hot wallets and the rest in cold wallets, safely keeping them offline and hacking.

"We have a hard time managing the cold wallet," the CoinCheck team said.

Although it is unclear whether other cryptocurrencies are stolen from the exchanges, so far, CoinCheck has confirmed that the $ 530 million NEM was stolen. NEM developers and the open source development community have reiterated that hard-fork will not be implemented to recover lost funds from a centrally-encrypted currency exchange.

Japan is the world's largest cryptocurrency trading market with daily trading volumes significantly above the U.S. and South Korean markets. It also has a rigorous crypto currency trading licensing program designed to ensure the security measures and infrastructure quality used by the trading platform.

CoinCheck executives disclosed a hacker attack at a news conference. MineCC photo
Investors were surprised by the hacking attacks, as CoinCheck is one of the largest encrypted currency exchanges in the Japanese market behind BitFlyer.

The Japan Financial Services Agency (FSA) reported on the CoinCheck hacking incident and it is expected that various government agencies will be involved in investigating CoinCheck security breaches.

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