Coincheck reveals loss of ¥58 billion in cryptocurrency NEM

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What is believed to be the biggest cryptocurrency marketplace hack ever has just occurred in Japan, where digital thieves made off with over half a billion dollars worth of NEM (XEM) tokens, CoinDesk reports.

The FSA hopes to ensure there are sufficient internal controls at virtual currency exchanges and to prevent another theft. What I need now is for the company to return my money without fail.

"We're still examining how many of our customers are affected", he said, adding that the exchange was trying to find out whether the breach was from Japan or another country. "I think there are things they could have done inside the company to prevent trouble like this".

There was some optimism earlier in the morning that Bitcoin could be moving into its Saturday rally, hitting an intraday high $11,424.88, but with investors continuing to be a little edgy, there is a rush to lock in any reasonable profits before another sell-off.

The virtual currency is well down from record highs approaching $20,000 in late December, having rocketed 25-fold past year, before being hit by concerns about a bubble and worries about crackdowns on trading it. "If I can't get a refund, this is no different than fraud".

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Coincheck was not registered with Japan's Financial Services Agency, but now the exchange is planning to do so.

Still, the company has launched a proactive advertising campaign, including TV commercials featuring an entertainer. The company "is now determining what impact the breach will have on our finances", said Yusuke Otsuka, chief operating officer.

Like bitcoin, NEM is a cryptocurrency built on top of blockchain, but it uses a more environmentally-friendly method to confirm transactions, according to its website.

The operator says it will reimburse customers with Japanese currency. Coincheck said that around 523 million of the trade's NEM coins were sent to another record around 3 a.m. nearby time (1 p.m. Thursday), as indicated by a Google interpret of a Japanese transcript of the Friday public interview from Logmi. "They were very relaxed with their security measures", Wong said.

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