TOKYO: Currency exchange Coincheck after hackers stole hundreds of millions of dollars in digital assets from the Tokyo-based firm in one of the biggest heists ever Units of the cryptocurrency NEM worth A$660 million were taken based on the exchange rate on Friday exceeding even the $593 million in bitcoin stolen from the MtGox exchange in 2014. Coincheck suspended trading of all cryptocurrencies except bitcoin on Friday, and said it had lost 523 million units of NEM, the 10th biggest cryptocurrency in the world based on market capitalisation. The Financial Services Agency (FSA) said in a statement that it had ordered Coincheck to investigate the cause of the incident, “properly” deal with clients, strengthen risk management and take preventive measures. The financial watchdog told the exchange to respond to the orders by February 13, warning that the agency would raid its office if necessary.
Coincheck President Koichiro Wada bowed and apologised at a press conference after the hack was revealed at a press conference last Friday night. He said the company may seek financial assistance, according to Kyodo News service. Japanese TV footage showed a small group of customers standing outside the company’s Tokyo head office Friday night. Coincheck, which calls itself the leading Bitcoin and cryptocurrency exchange in Asia, said it detected the unauthorised access to its system about 3am (5am AEDT) last Friday morning. Coincheck has said it will use its own funds to reimburse about 46.3 billion yen (around A$531 million) at a rate of 88.549 yen per NEM to all 260,000 customers who lost their holdings. The company said it would reimburse customers in yen, not cryptocurrency. The FSA said at a briefing Monday that it was checking to ensure Coincheck had the ability to make those refunds.
