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Coincheck Hack: $500m Boost for XEM as Exchange Begins Payout

 2 min read / 

The Japanese exchange Coincheck has started to compensate customers who fell victim to the NEM (XEM) heist in late January this year.

In a blog post published today, the exchange said that it would refund victims 88 JPY, equivalent to $0.83 USD that would be multiplied by the number of NEM tokens they held at just before midnight, Japan time, on the 26th of January 2018.  The compensation, which is estimated to be worth $420m, will be deposited into users’ Coincheck accounts and will start this week.

Coincheck has investigated the heist and with a panel of experts said in a blog post published on Thursday last week said they believed hackers managed to infiltrate an employee’s terminal and steal the secret NEM key which they then used to transfer the tokens off the exchange. As Coincheck used online or  ‘hot’ wallets, the exchange was unable to stop the transfer.

Claiming on their website to be the “smart asset blockchain”, NEM aims to create a platform that will enable companies to integrate blockchain technology into their businesses.

Reaching a record high of $2.09 in early February, XEM tokens are presently worth, as of 14:00, $0.40, a 14% rise since Monday’s open when the coin was trading at $0.35: a $519m boost for the coin’s total value. The coin began trading on the 1st of April, 2015.

 

(Source: CoinMarketCap)

On the 26th of January, Coincheck admitted that 260,000 NEM tokens, worth at that time over $526m, were illegally transferred off the exchange. Following the heist, the exchange closed down most of the services and moved all the digital currencies off the server and into cold storage whilst it cooperated with the authorities.

The number of people who owned NEM on Coincheck at the time of the heist was estimated to be 260,000 people. The exchange also said in the blog post:

“Once again, we would like to apologize for the inconveniences that the illicit transfer of NEM from out platform and the resulting suspension in services has caused our customers and anyone else affected by this incident. Thank you for your patience.”

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