Japanese exchange to refund customers £300m after huge cryptocurrency heist

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A hacker managed to funnel out 500 million NEM coins, a value of more than $424 million Dollars, one of the exchange's co-founders said at a news conference in Tokyo Friday, according to.

Tokyo-based cryptocurrency exchange Coincheck Inc said yesterday it would return about 46.3 billion yen ($425 million) of the virtual money it lost to hackers two days ago in one of the biggest-ever thefts of digital money.

During a press release following the hack it was revealed by the exchange's representatives that the funds were stored on a single-signature hot wallet, constituting a relatively low-security environment. The Japanese Financial Services Agency is considering setting a fine for the hack, due to the fact that exchanges that operate in Japan are supposed to have adequate security to prevent hacks like this one from happening.

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"The timing of the reimbursement and the application process are now under consideration", the company said in a statement. As of this writing NEM is listed as the tenth largest cryptocurrency by volume on CoinMarketCap, behind those like Bitcoin, Ethereum, and Litecoin. That amounts to almost 90 percent of the 58 billion yen worth of NEM coins the company lost in an attack that forced it to suspend on Friday withdrawals of all ryptocurrencies except bitcoin. NEM is moving forward, too, with the development team behind the coin announcing that it is working on an automated system that will track the stolen coins and tag all addresses that receive the "tainted" money.

The Tokyo-based exchange suspended trading after detecting the "unauthorised action". More recently, South Korean cryptocurrency exchange Youbit last month shut down and filed for bankruptcy after being hacked twice previous year. More recently, South Korean cryptocurrency exchange Youbit last month shut down and filed for bankruptcy after being hacked twice previous year.

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