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29
January 2018
 |
Cryptocurrency (The Total Investment & Insurance
Solutions)
A business improvement order was given on Monday to Coincheck Inc. by
Japan's financial watchdog after the Tokyo-based virtual currency exchange said
last week it had lost USD532 million's worth of NEM cryptocurrency in a hacking
attack. The Total Investment &
Insurance Solutions
Japan's Financial Services Agency issued the order to Coincheck for not
having sufficient security measures to prevent such attacks, with agency
officials also saying the company has a poor standard of customer service,
Xinhua news agency reported. The Total
Investment & Insurance Solutions
The
agency instructed Coincheck to investigate the cause of the security breach and
report its future preventative measures back to it by February 13.
The
losses of the NEM cryptocurrency in the Coincheck incident were the largest
ever in a security breach, and the firm has been instructed by the agency to
reimburse its customers.
On
Friday, the virtual currency exchange halted the majority of its operations,
stating later that all of its customers' holdings of NEM coins had been stolen.
Coincheck
said that 2,60,000 of its customers affected would be compensated for $422
million in cash that was lost at the time.
Many
customers were irate, however, as the amount reflected a lower rate of NEM
coins, and the announcement was made after news of the possible theft had
become public.
The
coins were being stored in a digital wallet, Coincheck said, which is not as
secure as an offline wallet. Coincheck had previously been warned by Japan's
financial watchdog about storing its coins in this way.
Japan's
top government spokesperson, Chief Cabinet Secretary Yoshihide Suga, said on
Monday the government was investigating the incident.
Tokyo's Metropolitan Police Department will also begin a probe into the
case, he said. The Total Investment
& Insurance Solutions
In
2014, Mt. Gox, another Tokyo-based virtual currency exchange, suspended
operations on its exchange after a number of cyber attacks leading to bitcoin
worth $440 million being stolen.
Following
the Mt. Gox incident, the government changed the law and made it a requirement
that virtual exchanges register with the government from April 2017.
However,
Coincheck's registration with the government is still awaiting approval.The Total Investment & Insurance Solutions
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