Coincheck, a large cryptocurrency exchange in Japan said that about 500 million NEM coins worth $400 million were lost after the coins were sent “illicitly” outside the venue, Bloomberg reported.
The exchange halted trading of digital assets other than Bitcoin (Bitcoin) and stopped all withdrawals from the platform after what some reports are describing as a massive theft.
*Urgent update regarding deposits of NEM* (Updating)— Coincheck (@coincheck_en) January 26, 2018
We are also currently halting sales and purchases of NEM. Again, please accept our sincere apologies for this inconvenience.https://t.co/4OCB0LPDuz
Coincheck Inc. co-founder Yusuke Otsuka said during a late-night press conference at the Tokyo Stock Exchange that the company didn’t know how the 500 million tokens went missing, but the firm is working to ensure the safety of all client assets.
The Japanese exchange said it did not appear that hackers had stolen other digital currencies.
Japan’s Financial Services Agency is investigating situation.
"We are looking into the facts surrounding Coincheck," the agency said.
Cryptocurrency NEM, which intends to help businesses handle data digitally, briefly fell more than 20 percent Friday before recovering to trade about 8 percent lower near 85 cents, according to CoinMarketCap. Most other major digital currencies, including Bitcoin, traded little changed on the day.