Dark Reading is part of the Informa Tech Division of Informa PLC

This site is operated by a business or businesses owned by Informa PLC and all copyright resides with them.Informa PLC's registered office is 5 Howick Place, London SW1P 1WG. Registered in England and Wales. Number 8860726.

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
Florida Town Pays $600K to Ransomware Operators
Curtis Franklin Jr., Senior Editor at Dark Reading,  6/20/2019
Pledges to Not Pay Ransomware Hit Reality
Robert Lemos, Contributing Writer,  6/21/2019
Register for Dark Reading Newsletters
White Papers
Video
Cartoon
Current Issue
Building and Managing an IT Security Operations Program
As cyber threats grow, many organizations are building security operations centers (SOCs) to improve their defenses. In this Tech Digest you will learn tips on how to get the most out of a SOC in your organization - and what to do if you can't afford to build one.
Flash Poll
The State of IT Operations and Cybersecurity Operations
The State of IT Operations and Cybersecurity Operations
Your enterprise's cyber risk may depend upon the relationship between the IT team and the security team. Heres some insight on what's working and what isn't in the data center.
Twitter Feed
Dark Reading - Bug Report
Bug Report
Enterprise Vulnerabilities
From DHS/US-CERT's National Vulnerability Database
CVE-2019-12280
PUBLISHED: 2019-06-25
PC-Doctor Toolbox before 7.3 has an Uncontrolled Search Path Element.
CVE-2019-3961
PUBLISHED: 2019-06-25
Nessus versions 8.4.0 and earlier were found to contain a reflected XSS vulnerability due to improper validation of user-supplied input. An unauthenticated, remote attacker could potentially exploit this vulnerability via a specially crafted request to execute arbitrary script code in a users browse...
CVE-2019-9836
PUBLISHED: 2019-06-25
Secure Encrypted Virtualization (SEV) on Advanced Micro Devices (AMD) Platform Security Processor (PSP; aka AMD Secure Processor or AMD-SP) 0.17 build 11 and earlier has an insecure cryptographic implementation.
CVE-2019-6328
PUBLISHED: 2019-06-25
HP Support Assistant 8.7.50 and earlier allows a user to gain system privilege and allows unauthorized modification of directories or files. Note: A different vulnerability than CVE-2019-6329.
CVE-2019-6329
PUBLISHED: 2019-06-25
HP Support Assistant 8.7.50 and earlier allows a user to gain system privilege and allows unauthorized modification of directories or files. Note: A different vulnerability than CVE-2019-6328.