Coincheck Begins Refunds for Victims of Recent Hack
On January 26, Tokyo-based crypto exchange, Coincheck, was the source of the largest exchange hack and theft to date. With roughly $530M of the cryptocurrency NEM being stolen by hackers, this hack surpassed the infamous Mt. Gox hack by almost $100M. The exchange's debility, allowing such a large hack, was determined to be caused by the exchange keeping too many of its funds in what are called "hot wallets", which are stored on the company's servers, and not on "cold wallets", which are stored off-line.
Coincheck announced today that reimbursement to affected parties will commence and will be paid as such:
To prevent such further issues, the Coincheck plans to establish a risk management committee, and strengthen their internal audit and management systems. A more detailed look at Coincheck's proposed plan can be found here. Coincheck believes the hack stemmed from phishing emails sent to employees, under the guise of an internal message; further explained here. Today, the company plans to restore many of its services: