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The Biggest Cybersecurity Breaches of 2018 (So Far)

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darkreading.com | insecurity.com July 2018 18 January 30, 2018 In possibly the largest known cryptocurrency hack to date, Japanese exchange Coincheck announced Friday that it had lost XEM cryptocurrency worth 58 billion yen (approximately $530 billion). This surpasses the Bitcoin currency lost by the Mt. Gox Bitcoin exchange in 2014, worth 48 billion yen. XEM (or NEM coins), created by the Singapore-based NEM Foundation, is one of the most popular cryptocur- rencies in the world, according to Reuters. Coincheck acknowledged its security practices on XEM were insuf- ficient, however. As Money reports: "Coincheck said it used different security standards for different curren- cies, 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 multisignature 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% of the losses. Read more about the incident here. n 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. Write to us at editors@darkreading.com. 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 the largest-ever cryptocurrency theft. Next Previous

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