crime

Regulator orders Coincheck to get its act together after Y58 bil cryptocurrency theft

24 Comments
By Taiga Uranaka and Thomas Wilson

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© (c) Copyright Thomson Reuters 2018.

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24 Comments
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People losing money on bitcoin ? I'm shivering from Schadenfreude.

2 ( +7 / -5 )

That headline is mighty colloquial sounding. Did the government regulator say "Git ch'alls act together now ya punks" or did they use dry legal expressions such as "The loss of $500 million is a major impediment to the process of approving a license for the continued operations of Coincheck and Sons LLC"? I'm heavily betting on the latter.

2 ( +3 / -1 )

.... sounds rather lenient to say the least....

5 ( +5 / -0 )

Later this year I expect to read that the FSA will have demanded an increased budget to deal with increased costs related to cryptocurrency oversight costs. I'd rather it stays in cowboy land myself, and I don't think your average tax payer wants anything to do with bearing the costs of other people's speculative cryptocurrency trading activities.

On the bright side, I also expect the various Japanese exchanges to come up with secure cryptocurrency management schemes so as to entice and ensure their customers. Properly segregating client funds would be one part of this.

-1 ( +1 / -2 )

That headline is mighty colloquial sounding. Did the government regulator say "Git ch'alls act together now ya punks" or did they use dry legal expressions such as "The loss of $500 million is a major impediment to the process of approving a license for the continued operations of Coincheck and Sons LLC"? I'm heavily betting on the latter.

I found this:

2月13日までに原因の究明、再発防止策などを求める業務改善命令を出した。

[The Financial Services Agency] issued a business improvement order requesting an investigation into [the hack], and [Coincheck's] plan to prevent a recurrence, to be submitted by February 13.

Link: https://headlines.yahoo.co.jp/hl?a=20180129-00000060-zdn_n-sci

2 ( +4 / -2 )

People losing money on bitcoin ? I'm shivering from Schadenfreude.

Being happy about people being robbed of their money.

Classy.

0 ( +8 / -8 )

more cryptocurrency scams, again......

2 ( +5 / -3 )

If they have included serial numbers on all cryptocurrency digital money and then the stolen digital money can be tracked down and trading of the cryptocurrency will be safer than now.

They should create new crytocurrency with serial numbers in each of coin. The crytocurrency exchanger can be put red-alert if the hecker steal the coins. Current, all digital money are not safe.

-1 ( +0 / -1 )

@Chop Chop

Nearly all money in the first world only exists in the digital realm. It's all vulnerable to an extent. Cryptocurrency more so because it isn't regulated the same way that traditional banking is so it's a lot more porous.

Shame that these people lost their money, though. It's hard enough to get the Japanese public to dip into new markets and I don't think this will help.

0 ( +1 / -1 )

It astounds, that people suddenly develop amnesia, a total shade of white covering their sight into the now, the past, both distant and close: The financial institutions have been ripping people off for centuries. Scandals, robberies, bribes, dirty money, Sub Prime Mortgages anyone? You know, remember, Fanny May, Lehman Brothers... The Medici Bank? RBS? Sumitomo? Banco Espirito Santo? Industrial Bank of Japan? The list is exhaustive... Bitcoin has NEVER been a scam. It is not a scam. Neither has it been hacked, not Bitcoin.

Block chain is the future. Embrace the change. KNOW what you are doing. Don’t use 3rd party exchanges, always have control over your private keys and seed phrase. It’s easy.

0 ( +3 / -3 )

If they have included serial numbers on all cryptocurrency digital money and then the stolen digital money can be tracked down and trading of the cryptocurrency will be safer than now.

Every transaction that has ever happened has been recorded, and the ownership of every 'coin' can be tracked right back to it's inception, along with every wallet that has ever owned it, using its unique ID. The blockchain is the ledger all transactions on that network.

They should create new crytocurrency with serial numbers in each of coin.

You mean like every cryptocurrency out there already does as the core part of the system?

The crytocurrency exchanger can be put red-alert if the hecker steal the coins.

They will have already done that with the NEM coins that were stolen in this theft. It's just that it doesn't do them much good, because they will have no idea who owns the wallets that own the coins.

Current, all digital money are not safe.

No, that's incorrect. Anyone who handles their own wallet, in a secure cold storage or as a paper wallet is fine. It's only those who use hosted wallets who run the risk.

0 ( +3 / -3 )

Yongyang

you are right,I totally agree with you,I already had an account at one of exchange company(bitflyer)I funded my account last Wednesday for first time,deposite reflected into my account,but they emailed me after,informing me that my name shown on wire doesn't match my name registered at company,they ask me to check again wether it's in Katagana or Alphapet and correct at at home page,then they can verify it and confirm registration,I did several times but they kept sending me same email,finally there was an indication saying"your bank account information is under verification now"this was last Friday bug up till now got no further action,what am I supposed to do?!

2 ( +2 / -0 )

kibousha,

“People losing money on bitcoin ? I'm shivering from Schadenfreude.”

Are you not shivering from the fact you’ve somehow misunderstood this story to be about Bitcoin?

-2 ( +1 / -3 )

And exactly how does the FSA hope to regulate cryptocurrency, don't they know they can never regulate cryptocurrency like they regulate every FI.

2 ( +2 / -0 )

Ha, ha.

1 ( +2 / -1 )

China got quantic level crypting. Since then it is stupid to leave cryptocurrency alive. It is not secured enough anymore.

0 ( +1 / -1 )

 It's hard enough to get the Japanese public to dip into new markets. 

Not really. A previous article stated that "Mrs. Watanabes" were a major force behind global Bitcoin speculation. This is the same ilk who actively invested in NTT, etc. in the lead-up to 1992. LOL.

2 ( +2 / -0 )

China got quantic level crypting. Since then it is stupid to leave cryptocurrency alive. It is not secured enough anymore.

Where are you getting this information about China from?

Even when someone comes up with quantum computing, it will make more sense to putting that processing power towards mining than towards hacking. If someone hacks bitcoin, it will crash the value, making the theft pretty much useless - it's like stealing the Mona Lisa - it would be extremely hard to sell. If they put their resources into mining however, they could win every block of the chain, until others started also using quantum computing. At 25 bitcoin every ten minutes, that's roughly $1.5 million/hr that could be made from using the quantum computing for mining.

0 ( +0 / -0 )

People losing money on bitcoin ? I'm shivering from Schadenfreude.

If you had the foresight to invest in bitcoin, maybe you would be able to afford a nice warm sweater.

They will have already done that with the NEM coins that were stolen in this theft. It's just that it doesn't do them much good, because they will have no idea who owns the wallets that own the coins.

Yes, as you say, they know the addresses and that money is "marked" in a sense. It helps a bit, as it is now tainted money. For one, it will be very difficult for the thief to spend the NEM without revealing their identity now. Sure, there will be ways to launder it, but it will be pretty tough to launder that much.

It's quite possible the thief, now sitting on money he/she can't spend, will offer a ransom for it that is substantially less than its value. That would mean a successful crime, unfortunately, but it would make things easier all around for everyone else.

0 ( +0 / -0 )

You'd think the regulators would also be asking questions about when they'll let people withdraw their non-NEM funds. They're still holding other coins and fiat hostage!

0 ( +0 / -0 )

Kinyucho really are a joke.  They pick on banks and brokers for the most minor rule infractions that cause no loss to the Tanaka in the street.  And here a huge sum is "stolen" from people and they just make a bit of noise.  Crypto as a technology may have some legs (although I am still skeptical) but as a currency and an "investment" it is a scam thru and thru.

0 ( +0 / -0 )

here a huge sum is "stolen" from people and they just make a bit of noise.

They've taken the first step in dealing with this issue, to order a report on what happened and how it will be prevented in the future.

Do you expect that they should have already finished everything? Did you look at the date when this incident happened?

0 ( +0 / -0 )

it will be very difficult for the thief to spend the NEM without revealing their identity now.

I've been thinking this through in my head, and I'm not sure it's that difficult. Whichever wallet holds the money now can just transfer it to another wallet, and when they cash out, the person who cashes out can just say they received an anonymous payment.

I wouldn't cash out in a first-world country myself though!

0 ( +0 / -0 )

it will be very difficult for the thief to spend the NEM without revealing their identity no

Just use Shapeshift or Changelly to exchange your NEM into another Crypto: Bingo. Not difficult at all.

0 ( +0 / -0 )

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