Tokyo: Coincheck reveals loss of ¥58 billion in cryptocurrency NEM

Coincheck on Friday revealed the loss via a hack of 58 billion yen in the virtual currency NEM

TOKYO (TR) – The operator of a cryptocurrency exchange in Tokyo announced on Friday night that a hack has resulted in the loss of about 58 billion yen in the virtual currency NEM, reports NHK (Jan. 27).

At a press conference, operator Coincheck, based in Shibuya Ward, said the company temporarily restricted deposits, withdrawals, sales and purchases of NEM. Withdrawals of other cryptocurrencies and Japanese yen have also been restricted.

“We apologize for any inconveniences caused to our business partners and stakeholders,” said Koichiro Wada, the president of Coincheck.

Coincheck is preparing to file a claim with the Financial Services Agency and the Tokyo Metropolitan Police while conducting an investigation into the cause of the hack and where the virtual currency went.

The company is also considering preventative measures and compensation for customers though specific details were not revealed. The company is not certain when it can resume normal operations.

According to Coincheck, unauthorized access in its system just before 3 a.m. on Friday. The access was discovered by the company at around 11:00 a.m. By that night, customers had assembled outside of its headquarters.

Greater than MtGox in 2014

Launched on March 31, 2015, NEM is a peer-to-peer cryptocurrency and blockchain platform. Coincheck was started in August of 2012. The exchange trades 13 different cryptocurrencies.

The losses of NEM on Friday exceed the 48 billion yen in the virtual currency bitcoin that disappeared in the MtGox bitcoin exchange in Tokyo in 2014.

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