Japanese exchange Coincheck has confirmed the theft in 527 million dollars

© AP Photo / Koji Aaagoplaxia in Tokyo looking at the screen with stock quotations. Archive photoJapanese exchange Coincheck has confirmed the theft in 527 million dollars© AP Photo / Koji Sasahara

The attackers stole from the accounts of clients of the Japanese stock exchange Coincheck cryptocurrency cryptocurrency NEM equivalent to 58 billion yen, or 527 million dollars, this at a press conference said representatives of the exchange.

On Friday it was reported that Coincheck has stopped trading alternative cryptocurrencies after media reports on the withdrawal from the stock exchange order of 723 million dollars from the wallets of users.

First blog Coincheck there was a message about limiting the possibility of replenishment of purses cryptocurrency NEM. (NEM ranks 10th in the list of the largest cryptocurrency, according to CoinMarketCap). After that, the exchange announced a ban on the purchase, sale and removal of the NEM. In the end, the ban was related to the purchase and sale of all cryptocurrencies, besides bitcoin, and withdrawals. The head of the NEM Foundation LON Wong (Lon Wong) stated that this theft has become «the largest in world history.»

As it turned out, the exchange’s management to ignore the recommendations of the developers to use MultiSig technology – a system of several keys, passwords to withdraw money from the account. In addition, the exchange’s management did not keep accounts of its customers on a stand-alone Internet computer, which is common practice for other cryptocurrencies.

«Control method without connecting to the network technically difficult, and people who could do it, we did not have enough,» — admitted the President of the exchange, the 27-year-old Koichiro WADA.

The office for financial operations Japan has launched an investigation.

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