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Coincheck execs don’t admit security flaws

Jan 29 2018
By
Jonathan Smith

 The executives of the Japanese cryptocurrency exchange Coincheck, which became the latest victim of a security breach and theft of cryptocurrencies worth $530 million, refused to admit security flaws, reports CCN.


We remind you that over the weekend it was revealed that CoinCheck’s hot wallet was hacked and client funds in XEM coins, native to the NEM blockchain, worth $530 million were stolen, making it the largest heist in cryptocurrency history so far. Initially it was reported that Ripples were also stolen.


At a news conference on Sunday, the CEO of CoinCheck and several other executives told reporters that the exchange is planning to refund its clients and resume trading, without revealing further details. In fact, it seems, at this point there are no specific plans and nobody at Coincheck knows how exactly the funds were stolen.


The executives, however, refused to admit that there is a flaw in the security of Coincheck, despite the exchange not having a multisignature security measures, unlike many other major cryptocurrency exchanges like Kraken, Coinbase and Bitfinex, who have teamed up with BitGo to make sure that any transaction is verified by a third party, before being processed. Worse still, it seems that Coincheck was keeping client funds in an online hot wallet, which meant that sooner or later, hackers were going to try and steal them. Which they obviously did.


Coincheck is a major Japanese cryptocurrency exchange that operates throughout Asia and has a license from Japan’s Financial Services Agency. Its services include leveraged and spot trading in some of the major cryptocurrencies, as well as an  e-wallet service, money transferring, a cryptocurrency-based donation crowdfunding platform, bitcoin lending and an API for merchants and developers to accept payments or build applications.

 

  

TAGS: coincheck  theft  hack  nem  xem 
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