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Scandal with Coincheck

Coincheck, the famous bitcoin-Exchange, said that on January 26, 2018, huge amounts of money had been stolen from their platform. The platform suffered approximately $ 533 million equivalent to NEM.

It is well known that on the day of the abduction, the exchange suddenly stopped operations on this crypto-currency , at that time the withdrawal of funds in an unknown direction was about one hundred million. In less than an hour, robbers managed to raise another $ 600 million in NEM tokens .

Having combined all the information and began to look for confirmation, by the evening there was a statement about the total amount of platform losses, in the amount of 58 billion yen.

Coincheck has already made an appeal to the FSA (Financial Services Agency of Japan) and a statement to law enforcement agencies has already filed, as stated by the news portal Nikkei. Representatives of the company convince that they are working now on the issue of compensation to users.

Of course, the president of the Nem Foundation did not leave the conference without attention, from his words it became clear that there could be no claims to his company, since from the technical point of view all responsibility lies solely on the exchange.

The convictions of the president of the NEM Foundation apparently did not make a big impression on users, because after the announcement of the theft, the rate of XEM fell sharply by 0.16. Later, he rose a little, but still remains significantly understated relative to previous days.

Decision on compensation

The affected users turned out to be two hundred and sixty thousand people according to the stock exchange calculations. Representatives of Coincheck have already stated that they are ready to pay compensation to all. Also at the moment we only know that:

-Coincheck openly apologized to the victims and users, for the inconvenience on the exchange that are taking place at the moment;
-The means were withdrawn in one direction, i.e. on one account;
-A study is underway and everything is being done to quickly resume the platform;
-All efforts are made to improve security on the platform.

As is known, most crypto-exchange exchanges use to protect multi-signature user facilities that do not allow the use of currency in any transactions without confirmation, on the other hand. This is what NEM President said in his interview after the incident. He mentioned to everyone that it is better to use the smart contract that his company provides, and that probably this situation would not have happened if Coinchek had not neglected this function.

The conclusion comes one:

A service with several signatures must be present on any crypto exchange, as a confirmation of security conditions. This disadvantage can be attributed yet that all the funds on the Coincheck platform were in a hot purse. Such a purse is directly connected to the Internet, which is probably the reason for the rapid availability of users’ funds.

There were some open questions, such as: how quickly will the exchange be able to pay compensation? will it remain as popular after the incident?

The post Scandal with Coincheck appeared first on 5 to 9 News.

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Scandal with Coincheck


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