Coincheck, a Tokyo-based crypto exchange, announced on their website today that certain anomalies resulting from an event occurrence resulted in the loss of $533 million dollars (58 billion yen) when 500 million NEM tokens disappeared in what’s being regarded as the biggest hack ever.
Despite the magnitude of this event, Coincheck doesn’t show any signs which indicate a plan on shutting down. This startling loss dwarfs Mt. Gox’s estimated loss of $340 million in 2014, however, the Coincheck attack won’t impact the market as severely as the one at Mt. Gox, which controlled 70% of all Bitcoin transactions worldwide.
In response, Coincheck has suspended services and in a confused attempt to reclaim any of the 6% of the total coins that were lost, the NEM team is working on an automated system to tag any of the stolen NEM. This sounds pretty wonky and will probably impact the value of the technology.
1/ @coincheckjp hack update: NEM is creating an automated tagging system that will be ready in 24-48 hours. This automated system will follow the money and tag any account that receives tainted money. NEM has already shown exchanges how to check if an account has been tagged.
— Inside NEM (@Inside_NEM) January 26, 2018
Don’t worry though, guys, the Coincheck team is really sorry that this happened and they’re looking into compensating their customers for the loss, which was undoubtedly the result of improper security practices. NEM president also expressed his condolences for the incident and stated that the team is doing everything they can to help.
It's unfortunate that coincheck got hacked. But we are doing everything we can to help. https://t.co/AH3lEDDG71
— Lon Wong (@2017Lon) January 26, 2018
As this news continues to break, we’ll have to wait and see how it will effect the price of NEM, which has experienced an 11.28% loss in value over the past 24 hours.