Coincheck, one of Japan’s largest cryptocurrency exchanges, has suffered a security breach, losing $532 million in digital assets (nearly $420 million in NEM tokens).
In a blog post, Coincheck confirmed what appears to be the biggest hack in the history of cryptocurrencies, without explaining how the tokens were stolen. The Tokyo-based cryptocurrency exchange has since abruptly frozen most of its services, including deposits, withdrawals, and trade of almost all cryptocurrencies, except Bitcoin. Coincheck also said the exchange had even stopped deposits into NEM cryptocurrencies, as well as other deposit methods including credit cards, and is working to trace where the missing digital currency ended up.
“We would like to offer our deepest and humblest apologies to all of those involved,” Coincheck said in a blog post. In a Tweet, the Coincheck said that it was considering compensating those who lost money.
This incident marks yet another embarrassing hack in the world of digital currency technology, once again raising questions about security and regulatory protection in the emerging market of digital assets.
What is NEM?
NEM (New Economy Movement) is a digital currency like Bitcoin or Ethereum that markets itself as a digital coin outside the control of governments and central banks, which can be used for fast, global transactions. Launched in March 2015, it is presently the eight largest cryptocurrency by volume.