Coincheck’s Offices Raided after $500 Million Hack

Coincheck’s Offices Raided after $500 Million Hack

Coincheck’s offices were raided by Japan’s Financial Services Agency a week after a $500 Million dollar hack took place against the Cryptocurrency exchange, files and computers were seized as evidence.  Hackers breached a single signature hot wallet resulting in the loss of 523 million NEM coins, worth 534 million dollars. The hack went unnoticed for at least eight hours until staff noticed an alert indicating a steep drop in their NEM coin reserves.

Coincheck was initially ordered to submit a written report to the securities watchdog by Feb. 13. However, given the amount of news coverage and shock at the size of the losses, the FSA decided to conduct a surprise investigation.

”Along with our ongoing efforts to file applications to be registered as a Cryptocurrency Exchange Service Provider with Financial Services Agency, we will continue business.”

Unlike exchanges that suffered serious hacks in the past Coincheck has denied any rumors of declaring bankruptcy. In 2014 Mt. GOX with handled 80% of the Bitcoin trades in the world filed for bankruptcy when they lost half a billion dollars worth of the cryptocurrency. More recently South Korean Cryptocurrency exchange Youbit closed down and declared bankruptcy after being hacked twice last year.