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Japan-based digital exchange Coincheck on Friday informed that it had been hacked following which it suspended client deposits and withdrawals for virtual currencies except Bitcoin resulting in a fall in crypto-currencies.
It is yet to be found out that how many people have been affected by the hack. The unauthorized access of the exchange that appeared to result in a loss worth half a billion US dollars of NEM coins is being investigated.
“At 3 am (1800 GMT) today, 523 million NEMs were sent from the NEM address of Coincheck. It’s worth 58 billion yen based on the calculation at the the rate when detected,” news agency AFP quoted Coincheck’s chief operating officer Yusuke Otsuka as saying.
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According to CoinMarketCap.com, NEM plunged more than 16 percent following the developments in a 24-hour period.
The breach was reported by Coincheck at 11.25 am and soon the company suspended trading for all cryptocurrencies apart from Bitcoin.
Major virtual currencies, which were hit due to the hack, began to recover, however with a short margin, late Friday.
According to a report in CNBC, Cryptocurrency NEM is intended to help businesses handle data digitally. The CoinMarketCap reported that NEM fell more than 20 percent Friday and later recovered to trade about 10 percent lower near 85 cents.
Addressing a press conference, Coincheck said that the NEM coins were stored in a “hot” wallet, referring to a method of storage that is linked to the internet.
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