![]() ![]() And already, Coincheck has found the 11 addresses where all 523 million of the stolen coins ended up. Since XEM revolves around blockchain database technology, the funds can be tracked. He noted that Coinbase, one of the largest exchanges in the U.S., holds at least 97% of users' funds in cold storage.Ĭoincheck also said it did not use multi-signature authentication for its XEM funds, a standard measure for other large-scale holders that requires at least two people for access. "Cold storage makes things far safer," Charles Bovaird, who writes extensively about cryptocurrencies for places like Forbes and Investopedia, told Money. Created by a Singapore-based crypto group called the NEM Foundation, XEM is one of the most popular cryptocurrencies in the world according to Reuters, though remains relatively overlooked in the U.S.Ĭoincheck said it used different security standards for different currencies, and that unlike customers' Bitcoin holdings, their XEM funds were stored in a "hot wallet" online instead of a "cold wallet" offline-a scenario ripe for hackers. In a hastily called press conference late Friday, the hacked exchange, Coincheck, admitted it had not used adequate security measures to store the stolen cryptocurrency, called XEM. ![]() It also comes less than two months after hackers pilfered $70 million from a Bitcoin mining site-a sign that crypto continues to attract hackers.Īll hacks are unique, and the most recent one was carried out thanks to security weaknesses at the targeted exchange.īut many are asking why hackers continue to target cryptocurrencies, especially when blockchain technology can record any transaction a user makes-and whether any exchange is truly safe. It was the latest high-profile crypto hack, and the most significant since $460 million in Bitcoin vanished in 2014. On Friday, a Japan-based cryptocurrency exchange revealed hackers had stolen more than $500 million-worth of customers' funds in what is thought to be the largest-ever cryptocurrency hack.
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