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What were they thinking - keeping that amount of money in a hot wallet - absolute madness. They were asking for it. Looks like they are trying to do the right thing now....

Japan cryptocurrency exchange to refund stolen $400m

A Japan-based cryptocurrency exchange will refund to customers about $400m (£282m) stolen by hackers two days ago in one of the biggest thefts of digital funds.

Coincheck said it would use its cash to reimburse about 46.3bn yen to the 260,000 people who lost their holdings of NEM, the world’s 10th-biggest cryptocurrency by market capitalisation.

On Friday, the company detected an “unauthorised access” of the exchange and later suspended trading for all cryptocurrencies apart from bitcoin.

Coincheck said its NEM coins were stored in a hot wallet instead of the more secure cold wallet, which is kept offline, because of technical difficulties and a shortage of staff capable of dealing with them.

The resulting 58bn yen loss exceeded the value of bitcoin that disappeared from MtGox in 2014.

https://www.theguardian.com/technology/2018/jan/28/japan-cryptocurrency-exchange-coincheck-refund-stolen-nem

<blockquote data-quote="DB008" data-source="post: 972224" data-attributes="member: 4258">What were they thinking - keeping that amount of money in a hot wallet - absolute madness. They were asking for it. Looks like they are trying to do the right thing now....Japan cryptocurrency exchange to refund stolen $400m
A Japan-based cryptocurrency exchange will refund to customers about $400m (£282m) stolen by hackers two days ago in one of the biggest thefts of digital funds. Coincheck said it would use its cash to reimburse about 46.3bn yen to the 260,000 people who lost their holdings of NEM, the world’s 10th-biggest cryptocurrency by market capitalisation.On Friday, the company detected an “unauthorised access” of the exchange and later suspended trading for all cryptocurrencies apart from bitcoin.Coincheck said its NEM coins were stored in a hot wallet instead of the more secure cold wallet, which is kept offline, because of technical difficulties and a shortage of staff capable of dealing with them.The resulting 58bn yen loss exceeded the value of bitcoin that <a href="https://www.theguardian.com/technology/2014/mar/18/history-of-bitcoin-hacks-alternative-currency" target="_blank">disappeared from MtGox in 2014</a>.<a href="https://www.theguardian.com/technology/2018/jan/28/japan-cryptocurrency-exchange-coincheck-refund-stolen-nem" target="_blank">https://www.theguardian.com/technology/2018/jan/28/japan-cryptocurrency-exchange-coincheck-refund-stolen-nem</a></blockquote>

[QUOTE="DB008, post: 972224, member: 4258"] What were they thinking - keeping that amount of money in a hot wallet - absolute madness. They were asking for it. Looks like they are trying to do the right thing now.... [CENTER][SIZE=6][COLOR=#0080ff][B]Japan cryptocurrency exchange to refund stolen $400m[/B][/COLOR][/SIZE] [/CENTER] A Japan-based cryptocurrency exchange will refund to customers about $400m (£282m) stolen by hackers two days ago in one of the biggest thefts of digital funds. Coincheck said it would use its cash to reimburse about 46.3bn yen to the 260,000 people who lost their holdings of NEM, the world’s 10th-biggest cryptocurrency by market capitalisation. On Friday, the company detected an “unauthorised access” of the exchange and later suspended trading for all cryptocurrencies apart from bitcoin. Coincheck said its NEM coins were stored in a hot wallet instead of the more secure cold wallet, which is kept offline, because of technical difficulties and a shortage of staff capable of dealing with them. The resulting 58bn yen loss exceeded the value of bitcoin that [URL='https://www.theguardian.com/technology/2014/mar/18/history-of-bitcoin-hacks-alternative-currency']disappeared from MtGox in 2014[/URL]. [CENTER][URL]https://www.theguardian.com/technology/2018/jan/28/japan-cryptocurrency-exchange-coincheck-refund-stolen-nem[/URL][/CENTER] [/QUOTE]

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