Coincheck Faces the Worst Exchange Theft in History, $530 Million Stolen | Cointific.com

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Coincheck Faces the Worst Exchange Theft in
History, 530 Million Stolen
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Officials of the Tokyo-based cryptocurrency
exchange made the statement on Friday that more
than 500 million NEM were stolen from the
exchange by an unknown hacker, worth around 530
million. Even though many others claim that the
exact amount cannot be determined until after the
investigations, the figures would likely remain
unchanged. The attack was aimed specifically at
the NEM wallet, and the hacker had moved around
300,000 XEM tokens to another address by the time
anyone could take any action. Currently, the
address is flagged and investors are warned
against buying tokens from it.Coincheck
executives admitted that the hack was possible
because they had kept all the tokens in "hot
wallet", that is, online. Since the Mt. Gox
attack, it became common for exchanges to keep
their token in "cold wallet", that is, offline in
secure storages. However, 
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 NEM's multisignature smart contract

• Another flaw in Coincheck's policy was the
  failure to implement NEM's multisignature smart
  contract, which added an additional layer of
  security. NEM officials made it clear that they
  are not going to activate a hard fork due to
  Coincheck's negligence of security.
• However, Coincheck is trying to reimburse the
  investors for their funds. Though it is not known
  if the reimbursement would be full or partial,
  Coincheck has made it clear that it would not let
  the investors suffer. Since Coincheck is
  account-based exchange instead of anonymous, it
  is possible to tag accounts from whom the coins
  were stolen and try to reimburse them.

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