Attacks/Breaches

1/30/2018
02:05 PM
50%
50%

Hack Costs Coincheck Cryptocurrency Exchange $530 Million

Losses at Japanese exchange Coincheck surpass those of the Mt. Gox Bitcoin exchange hack in 2014, and may be largest-ever cryptocurrency theft.

In possibly the largest known cryptocurrency hack to date, Japanese exchange Coincheck announced Friday that they had lost 58 billion yen, approximately $530 billion, worth of XEM cryptocurrency. This surpasses the 48 billion yen worth of Bitcoin lost by the Mt. Gox Bitcoin exchange in 2014.  

XEM (or NEM coins), created by the Singapore-based NEM Foundation, is one of the most popular cryptocurrencies in the world, according to Reuters. Coincheck acknowledged its security practices on XEM were insufficient, however. As Money reports

Coincheck 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.

The company also failed to use multi-signature authentication on XEM funds, which would require at least two people for access.

Although blockchain technology has enabled Coincheck to identify the 11 addresses where the stolen coins ended up, and set up a tool for exchanges to automatically reject purchases made with them, hackers may still be able to use the funds via "tumblers" - exchanges that act like cryptocurrency laundering services. Coincheck has promised to reimburse 90 percent of the losses.

Read more about the incident here.  

Dark Reading's Quick Hits delivers a brief synopsis and summary of the significance of breaking news events. For more information from the original source of the news item, please follow the link provided in this article. View Full Bio

Comment  | 
Print  | 
More Insights
Comments
Newest First  |  Oldest First  |  Threaded View
Election Websites, Back-End Systems Most at Risk of Cyberattack in Midterms
Kelly Jackson Higgins, Executive Editor at Dark Reading,  8/14/2018
Intel Reveals New Spectre-Like Vulnerability
Curtis Franklin Jr., Senior Editor at Dark Reading,  8/15/2018
Australian Teen Hacked Apple Network
Dark Reading Staff 8/17/2018
Register for Dark Reading Newsletters
White Papers
Video
Cartoon
Current Issue
Flash Poll
Twitter Feed
Dark Reading - Bug Report
Bug Report
Enterprise Vulnerabilities
From DHS/US-CERT's National Vulnerability Database
CVE-2018-15504
PUBLISHED: 2018-08-18
An issue was discovered in Embedthis GoAhead before 4.0.1 and Appweb before 7.0.2. The server mishandles some HTTP request fields associated with time, which results in a NULL pointer dereference, as demonstrated by If-Modified-Since or If-Unmodified-Since with a month greater than 11.
CVE-2018-15505
PUBLISHED: 2018-08-18
An issue was discovered in Embedthis GoAhead before 4.0.1 and Appweb before 7.0.2. An HTTP POST request with a specially crafted "Host" header field may cause a NULL pointer dereference and thus cause a denial of service, as demonstrated by the lack of a trailing ']' character in an IPv6 a...
CVE-2018-15492
PUBLISHED: 2018-08-18
A vulnerability in the lservnt.exe component of Sentinel License Manager version 8.5.3.35 (fixed in 8.5.3.2403) causes UDP amplification.
CVE-2018-15494
PUBLISHED: 2018-08-18
In Dojo Toolkit before 1.14, there is unescaped string injection in dojox/Grid/DataGrid.
CVE-2018-15495
PUBLISHED: 2018-08-18
/filemanager/upload.php in Responsive FileManager before 9.13.3 allows Directory Traversal and SSRF because the url parameter is used directly in a curl_exec call, as demonstrated by a file:///etc/passwd value.