Attacks/Breaches

1/30/2018
02:05 PM
50%
50%

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 largest-ever cryptocurrency theft.

In possibly the largest known cryptocurrency hack to date, Japanese exchange Coincheck announced Friday that they had lost 58 billion yen, approximately $530 billion, worth of XEM cryptocurrency. This surpasses the 48 billion yen worth of Bitcoin lost by the Mt. Gox Bitcoin exchange in 2014.  

XEM (or NEM coins), created by the Singapore-based NEM Foundation, is one of the most popular cryptocurrencies in the world, according to Reuters. Coincheck acknowledged its security practices on XEM were insufficient, however. As Money reports

Coincheck said it used different security standards for different currencies, 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 multi-signature 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 percent of the losses.

Read more about the incident here.  

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. View Full Bio

Comment  | 
Print  | 
More Insights
Comments
Newest First  |  Oldest First  |  Threaded View
WebAuthn, FIDO2 Infuse Browsers, Platforms with Strong Authentication
John Fontana, Standards & Identity Analyst, Yubico,  9/19/2018
New Cold Boot Attack Gives Hackers the Keys to PCs, Macs
Kelly Sheridan, Staff Editor, Dark Reading,  9/13/2018
Mirai Hackers' Sentence Includes No Jail Time
Dark Reading Staff 9/19/2018
Register for Dark Reading Newsletters
White Papers
Video
Cartoon Contest
Write a Caption, Win a Starbucks Card! Click Here
Latest Comment: This comment is waiting for review by our moderators.
Current Issue
Flash Poll
The Risk Management Struggle
The Risk Management Struggle
The majority of organizations are struggling to implement a risk-based approach to security even though risk reduction has become the primary metric for measuring the effectiveness of enterprise security strategies. Read the report and get more details today!
Twitter Feed
Dark Reading - Bug Report
Bug Report
Enterprise Vulnerabilities
From DHS/US-CERT's National Vulnerability Database
CVE-2018-17243
PUBLISHED: 2018-09-20
Global Search in Zoho ManageEngine OpManager before 12.3 123205 allows SQL Injection.
CVE-2018-17232
PUBLISHED: 2018-09-20
SQL injection vulnerability in archivebot.py in docmarionum1 Slack ArchiveBot (aka slack-archive-bot) before 2018-09-19 allows remote attackers to execute arbitrary SQL commands via the text parameter to cursor.execute().
CVE-2018-17233
PUBLISHED: 2018-09-20
A SIGFPE signal is raised in the function H5D__create_chunk_file_map_hyper() of H5Dchunk.c in the HDF HDF5 through 1.10.3 library during an attempted parse of a crafted HDF file, because of incorrect protection against division by zero. It could allow a remote denial of service attack.
CVE-2018-17234
PUBLISHED: 2018-09-20
Memory leak in the H5O__chunk_deserialize() function in H5Ocache.c in the HDF HDF5 through 1.10.3 library allows attackers to cause a denial of service (memory consumption) via a crafted HDF5 file.
CVE-2018-17235
PUBLISHED: 2018-09-20
The function mp4v2::impl::MP4Track::FinishSdtp() in mp4track.cpp in libmp4v2 2.1.0 mishandles compatibleBrand while processing a crafted mp4 file, which leads to a heap-based buffer over-read, causing denial of service.