Tokyo-Based Coincheck, one of the biggest exchanges for cryptocurrencies, fell victim of what is being called the biggest hack in the history of technology.
They also stated that they will use Coincheck’s own capital to reimburse all 260,000 users victims of the hacking. According to a statement released on its website, more than 500 million tokens were stolen. “We will carry out repayment funds from our own funds” said in the statement. “We apologize for any inconveniences caused to customers, business partners and related parties, we are committed to restarting services including an investigation of causes and strengthening of security system” it said.
The reimbursement has been valued at a rate of 88.549 yen (82 U.S. cents) for each coin but the timing of the reimbursement is yet to be defined.
When the statement was released, at approximately midnight Tokyo time, NEM price was $1.06. Today the price is 30% below at $0.750. Since December 18, 2017, NEM had been trading above $0.846 according to prices in coinmarketcap.com
Jeff McDonald, Vice President of NEM Foundation said in an interview with BBC that the blame lies on Coincheck because they didn’t use NEM’s multisignature contract. He said that part of the hacking was because blockchain technology is fairly new and they are still learning from it to improve security vulnerabilities.
The theft is being said to be greater than the one that happened back in 2014 with Mt. Gox when $340 million was stolen.
TheTokenPost is following this developing story.