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
More Than Half of Users Reuse Passwords
Curtis Franklin Jr., Senior Editor at Dark Reading,  5/24/2018
Is Threat Intelligence Garbage?
Chris McDaniels, Chief Information Security Officer of Mosaic451,  5/23/2018
Register for Dark Reading Newsletters
White Papers
Video
Cartoon Contest
Write a Caption, Win a Starbucks Card! Click Here
Latest Comment: This comment is waiting for review by our moderators.
Current Issue
Flash Poll
[Strategic Security Report] Navigating the Threat Intelligence Maze
[Strategic Security Report] Navigating the Threat Intelligence Maze
Most enterprises are using threat intel services, but many are still figuring out how to use the data they're collecting. In this Dark Reading survey we give you a look at what they're doing today - and where they hope to go.
Twitter Feed
Dark Reading - Bug Report
Bug Report
Enterprise Vulnerabilities
From DHS/US-CERT's National Vulnerability Database
CVE-2018-11506
PUBLISHED: 2018-05-28
The sr_do_ioctl function in drivers/scsi/sr_ioctl.c in the Linux kernel through 4.16.12 allows local users to cause a denial of service (stack-based buffer overflow) or possibly have unspecified other impact because sense buffers have different sizes at the CDROM layer and the SCSI layer.
CVE-2018-11507
PUBLISHED: 2018-05-28
An issue was discovered in Free Lossless Image Format (FLIF) 0.3. An attacker can trigger a long loop in image_load_pnm in image/image-pnm.cpp.
CVE-2018-11505
PUBLISHED: 2018-05-26
The Werewolf Online application 0.8.8 for Android allows attackers to discover the Firebase token by reading logcat output.
CVE-2018-6409
PUBLISHED: 2018-05-26
An issue was discovered in Appnitro MachForm before 4.2.3. The module in charge of serving stored files gets the path from the database. Modifying the name of the file to serve on the corresponding ap_form table leads to a path traversal vulnerability via the download.php q parameter.
CVE-2018-6410
PUBLISHED: 2018-05-26
An issue was discovered in Appnitro MachForm before 4.2.3. There is a download.php SQL injection via the q parameter.