$400 Million Missing In Hack Of Japanese Digital Currency Exchange

A man walks past a poster that informs customers that bitcoin can be used in this shop in Tokyo. Bitcoin is recognised as legal tender in the world's third-biggest economy. prices of Cryptocurrencies slumped on Friday after one of Japan’s biggest Bitcoi

Hackers apparently made off with the equivalent of 58 billion yen ($532 million) in digital currency, which would make it the biggest theft to date in the budding world of virtual money.

As for the transaction period, it will take for the refund to be deposited in your Coincheck wallet, the company has not set any strict deadline.

The apparent heist is larger than the Mt. Gox hack in 2014 - in USA dollar value - but its impact is unlikely to be as significant given the sheer number of cryptocurrencies in the market today and the increased value of bitcoin.

The company said Friday that more than 500 million NEM coins, the seventh largest cryptocurrency, vanished after being "illicitly" transferred off the exchange.

A 28-year-old computer programmer from Setagaya Ward, Tokyo, who spent ¥1 million on NEM and bitcoin last year, said, "I want detailed explanations about what happened".

The price of NEM has plunged 15%, even though the security flaw lies entirely with Coincheck.

Bitcoin on Friday dropped 3.4 percent and Ripple retreated 9.9 percent, according to prices available on Bloomberg.

The company said it will use its own capital to repay the 260,000 users impacted by the theft of NEM coins, at a rate of 81 cents for each coin, according to a statement posted on its website early Sunday. Coincheck, based in Tokyo, has reported the "illegal outflow of money" to the Japanese Financial Services Agency (FSA). The trade has around 6 percent of yen-bitcoin exchanging, positioning fourth by part of the overall industry on CryptoCompare. The news sparked fears of a hacking incident, similar to Mt.Gox, which lost $460 million worth crypto currencies and filed for bankruptcy in April 2014.

"Currently, buying and selling other than BTC (ortho coin) is temporarily suspended".

Following the breach, Coincheck put a halt on NEM trading, followed by a restriction on purchases and sales of all digital currencies, save for Bitcoin.

The exchange has said it's considering compensating clients.

Adding to the chain of events were unsubstantiated reports of upwards of $600 million of NEM leaving the exchange, per a report on CoinTelegraph.

UPD: There is still no clear information whether this was a hack or a planned action.

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