Coincheck Hacked, Wallets Frozen, Exchanges on Alert

Japanese-based cryptocurrency exchange Coincheck has confirmed a hacker broke through its security today and stole hundreds of millions of dollars worth of crypto. NEM worth $532 million and Ripple worth $123 million vanished. [Note: Subsequent reports suggest no other cryptocurrencies were stolen, including Ripple.] Coincheck has frozen all wallets as the Financial Services Authority and the Police investigate.

Because Japan recognizes Bitcoin as a currency, it is a major market maker in the cryptocurrency space. Coincheck’s freeze triggered a 16% drop in NEM’s price within hours. Ripple slid nearly 9% and Bitcoin dropped nearly 5%.

https://twitter.com/coincheck_en/status/956795569497817089

Coincheck is an unregulated, centralized exchange.

The breach highlights the problems of cryptocurrency exchanges where investors do not hold their actual deposits. Decentralized exchanges and wallets are proliferating, as traders try to secure and control their assets.

 

Disclaimer: Opinions expressed at The Daily Hodl are not investment advice. Investors should do their due diligence before making any high-risk investments in Bitcoin, cryptocurrency or digital assets. Please be advised that your transfers and trades are at your own risk, and any losses you may incur are your responsibility. The Daily Hodl does not recommend the buying or selling of any cryptocurrencies or digital assets, nor is The Daily Hodl an investment advisor. Please note that The Daily Hodl participates in affiliate marketing.