Wednesday, January 31, 2018

Bitcoin, Ripple and Ethereum drop, NEM still plunges :


The correction is confirmed on the main cryptocurrency, at the beginning of the week, operators remaining on the defensive after the biggest piracy in the history of virtual currencies.

Bitcoin is currently giving up 7% on Bitfinex at $ 10,607, while Ethereum is down 5% to $ 1,141. The Ripple stumbles from 8% to about $ 1.18 on Poloniex. The NEM (symbol XEM) continues its plunge, declining by 11% to $ 0.84, still leaded by the Coincheck affair.


 530 $ million record piracy
The NEM crypto-currency has indeed suffered major piracy on the Coincheck, Coincheck, Inc.'s Japanese Coincheck platform. 523 million "tokens" were stolen for a total of about $ 530 million (58 billion yen) - on the basis of quoted prices at the time of the breakage. About 260,000 Coincheck users would have been affected. Coincheck intends to repay them in full.

The stolen units were stored 'hot', instead of being placed in 'cold' portfolios more secure because disconnected from the Internet. This event could also encourage regulators to force exchange platforms to 'offline' storage ... In addition, NEMs gobbled by hackers were not protected by a multi-signature system.

'Regain the trust' of the community
"We would like to sincerely apologize to our customers and all those who have been affected by this incident and we will do our best to make significant changes to our platform in order to regain the trust of our customers and the community", assured Coincheck yesterday, on the sidelines of the announcement of a request for improvement of the operations of the FSA.

Previously, the platform had asked users to stop making deposits until restrictions were lifted. The exchanges and the withdrawals of NEMs had been suspended, then the exchanges of all the 'cryptos', except Bitcoin.

Coincheck has obviously been strongly criticized by the Japanese authorities, for its weak governance and its too light security. After this record piracy, the Japanese financial regulator has promised a general inspection of local cryptocurrency exchange platforms.

The FSA (Financial Services Agency) of course asked Coincheck to make the necessary improvements to its operations. The Japanese regulator is expecting from Coincheck a detailed report about piracy. Preventive measures will have to be clarified on February 13th. On-site registrations are also expected, if necessary.

The Mt. Gox Spectrum
The Coincheck affair reminds Japan of the sad memory of the Mt. Gox affair, a platform whose collapse in 2014 had caused trouble in the small world of 'cryptos'. Mt. Gox, then headed by the French Mark Karpelès, was ... the main trading platform of Bitcoin. At the height of its glory, Mt. Gox accounted for up to 80% of the total bitcoin trading volume. In February 2014, the platform abruptly halted its activity after the loss of 850,000 bitcoins, which at the time represented about $ 400 million. The Japanese exchange had collapsed, insolvent.

Faced with the 'specter' Mt. Gox, Coincheck announced on Sunday its intention to return about 90% of the sums stolen from its own funds. The timing and manner of proceeding have not been specified.

The FSA must also determine if Coincheck has sufficient funds to keep its promises, in other words if the group is still strong enough after this blow, which has significantly affected its reputation.

The platform currently says it will quickly strengthen its governance and the protection of its customers, while developing its risk management systems.

NEMs drawn?
The NEM is a cryptocurrency and a blockchain platform launched in early 2015. This blockchain is tested by financial institutions and private firms, especially in Asia. The NEM Foundation, based in Singapore, said, following the piracy, that the blockchain traceability system allowed him to track all the "tokens" stolen from Coincheck. According to the foundation, the hacker would not have moved the funds to another exchange or to personal accounts.
Réactions :

0 commentaires: