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Coincheck Says It Lost Crypto Coins Valued at About $400 Million

Coincheck Says It Lost Crypto Coins Valued at About $400 Million

Read more on Bloomberg.com

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  • I was at the press conference and now I'm convinced that this can be a big turning point of crypto.

    Japan was known as a country having a "good regulation" that embrace crypto boom. But now it is more likely that public opinion would become against crypto and the regulator will follow that (even though

    I was at the press conference and now I'm convinced that this can be a big turning point of crypto.

    Japan was known as a country having a "good regulation" that embrace crypto boom. But now it is more likely that public opinion would become against crypto and the regulator will follow that (even though CoinCheck hasn't got a full permission from government yet).

    Huge number of coin folders (mostly late majority) will be escaping from crypto in much bigger scale than Mt. Gox.

  • The hacking of crypto key storage is not a failure of crypto currency but of security technologies. Never before in history has data held this kind of value. Security technologies and security procedures will drastically improve because the value of the information being protected will warrant massive

    The hacking of crypto key storage is not a failure of crypto currency but of security technologies. Never before in history has data held this kind of value. Security technologies and security procedures will drastically improve because the value of the information being protected will warrant massive investment in time, education and money terms. Such events will not be the death of crypto currency. Remember these keys exist and this value will be released or invested or somehow distributed again into the system. Companies, individuals, institutions, governments, and the entire crypto currency/blockchain ecosystem will learn and it will carry-on. Ironically, what is worse for the system as a whole, is key loss or destruction -as happens with cold wallets. That is value that is gone forever.

  • They held a press conf, here's some key points.

    - Cracking took place at around 3am JST, company noticed that around 11*30 am JST

    - Have contacted financial regulator and ministry of police, also XEM association and other exchanges handling XEM

    - No cracking confirmed so far apart from XEM

    - Hot Wallet

    They held a press conf, here's some key points.

    - Cracking took place at around 3am JST, company noticed that around 11*30 am JST

    - Have contacted financial regulator and ministry of police, also XEM association and other exchanges handling XEM

    - No cracking confirmed so far apart from XEM

    - Hot Wallet (online wallet) was cracked (offline cold wallet is said to be safer), and also no multi-sig (multiple keys)

    - Doesn't seem to be an internal crack, still investigating whether it is from JP or ex-JP

    - XEM association negative for hard folk as of now.

    Coincheck is one of the largest cryptocurrency exchange. They've been using well know comedian for client acquisition, and in the interview, the investment priority was questioned very much.

    Also, FSA (regulator) introduced cryptocurrency registration last year. Coincheck was applying, but still under process of registration, while other major exchange are already registered.

  • The market blowback from this hasn’t been as huge as expected. Top three currencies are back up and still gaining.

    This is largely due to the fact that only one currency (Nem) was affected by the incident.

    Regulatory fallout remains to be seen and that’s where the long term damage could be.

  • I though the beauty of crypto is it’s traceability. So why can’t they just track them down?

  • This is huge... and it's causing Mt.Gox flashbacks. Coincheck says it lost crypto coins valued at around $400 million and this is almost the same amount that Mt.Gox lost.

    --additional comment--

    According to the Japanese press, the lost seems to be around 530 million. this would be the biggest lost in the history.

  • If it’s a hack, we’ve got problems.

  • The thing about that centralization and regulation that the distributed ledger is so keen to escape from, is that it comes with consumer protection, and recourse against fraud. “...spooking investors in a country that’s still wary of digital-token exchanges four years after the collapse of Mt. Gox....

    The thing about that centralization and regulation that the distributed ledger is so keen to escape from, is that it comes with consumer protection, and recourse against fraud. “...spooking investors in a country that’s still wary of digital-token exchanges four years after the collapse of Mt. Gox....” No kidding. It should be spooking investors everywhere.

  • A case of laws and regulations not being up to speed with technology. A few questions come to mind which I believe applies to countries outside of Japan.

    1. Should a centralized crypto exchange be able to operate prior to regulatory approval?

    2. Cold wallet and hot wallet for centralized exchanges

    A case of laws and regulations not being up to speed with technology. A few questions come to mind which I believe applies to countries outside of Japan.

    1. Should a centralized crypto exchange be able to operate prior to regulatory approval?

    2. Cold wallet and hot wallet for centralized exchanges: Shouldn't there be laws and regulations pertaining to where, when, and how certain funds (amount, type) are to be stored?

    The great benefit of most crypto currencies is the decentralized aspect lending to its security. By placing and managing it through a centralized exchange, you nullify that benefit with added counter-party risks. Without addressing the above, users are essentially placing funds/investments into the hands of an entity that's free to determine their own security measures.

    This means, an exchange is free to gravitate their service toward convenience, even if that jeopardizes its security. Guess what happened here?

  • my coin