All eyes are on Japanese cryptocurrency exchange Coincheck in the aftermath of what has become the biggest hack in virtual currency history – eclipsing the Mt. Gox hack of 2014.
According to Reuters, Coincheck delivered its report to Japan’s Financial Services Agency (FSA) on Tuesday, Feb. 13 on the hack in January which saw more than $500 mln worth of NEM coins stolen from the exchange.
On Jan. 26, $534 mln worth of NEM coins were stolen by hackers in a number of transaction from the address. The funds belonged to customers of the exchange, which were stored in an online ‘hot’ wallet.
According to Coincheck officials, the private key was stolen, which allowed a total of 523 mln NEM coins to be transferred from the wallet. Questions were quickly raised about the security measures taken by the Japanese exchange to store cryptocurrencies.
It has been a helter-skelter two weeks for Coincheck – as it worked to both trace the stolen NEM coins while working out a plan to refund 260,000 users affected by the hack.
The timeline of events tells the story, but there’s been far more at play in the wake of the massive hack.
Friday Jan. 26 – 03:00 – hackers transfer 523 mln NEM coins from Coincheck exchange to a single address. Friday Jan.26 – 05:25 – Coincheck announces suspension of deposits or withdrawals from the exchange, report theft to the police and Japan’s Financial Services Agency (FSA). Saturday Jan. 27 – Coincheck promises to refund 260,000 users affected by the NEM hack. Saturday Jan. 27- NEM development team rules out hard fork, create automated tagging system to identify and flag all stolen NEM coins in circulation. Tuesday Jan. 30 – NEM Foundation vice president Jeff McDonald announces that hackers are moving stolen NEM coins to various addresses 100 NEM at a time – while confirming no coins had been sold at exchanges. Friday Feb. 2 – FSA visits Coincheck’s offices for a site inspection following the hack.