Another Crypto Exchange Hacked, Could it Hurt Reputation of the Market?

On January 14, large crypto exchange Cryptopia was hacked, resulting in significant losses of investor funds. In an official statement released on Tuesday, the company said that the New Zealand police and the government’s High Tech Crimes Unit had initiated an investigation into the case.

This time last year, in January 2018, Japanese cryptocurrency exchange Coincheck was hacked and lost more than $500 million in user funds. At the time, Coincheck executives said in a press conference that the security breach was caused by a lack of personnel and experts working to improve the security measures of the exchange.

As Yuji Nakamura, a Tokyo-based technology journalist, reported on Jan 26, 2018: Main takeaways from Coincheck press conf: only NEM impacted. Plans to continue operating, restart trading; not clear on plan to repay customers; no multisig; wouldn’t admit security was weak; not sure how hacked, if domestic or foreign hackers; CEO barely spoke.

The Coincheck security breach prompted the Financial Services Agency (FSA) of Japan to tighten regulatory frameworks surrounding cryptocurrencies and implement changes into existing policies.


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