The largest stock market crash: losses of the Coincheck exchange surpassed the amount lost by Mt.Gox

Representatives of the Tokyo currency exchange Coincheck confirmed the loss of money, which seems to have become the biggest crash in the history of the crypto-currency market.

At a press conference held on the evening of January 26, Vakata Koichi Yoshihiro, chairman of the board of the exchange, and Yusuke Otsuka, chief operating officer, estimated damages of 58 billion Japanese yen (about $ 533 million). According to reports of Bloomberg journalists who attended the conference, 500 million NEM tokens were stolen from Coincheck’s crypto-currency wallets.

Tweets of experts point, however, to the fact that the exact amount of stolen money is only to be ascertained, to verify a detailed and thorough investigation. The amount of losses in dollars is difficult to estimate (especially considering the volatility of the tokens and the absence of official information from the exchange), but according to various sources at the moment the figure is at least $ 400 million. Incident, of course, could not lead to a collapse in the cost of XEM, protocol NEM. According to Coinmarketcap, the current XEM rate was $ 0.85 with a maximum of $ 1.01.

It is noteworthy that the amount in dollars stolen from Coincheck is likely to exceed the amount lost by the Mt.Gox exchange in 2014 (approximately $ 340 million), although the overall impact on the crypto-currency market will be much smaller given the explosive growth of market capitalization.

The rumors of the theft spilled right into the morning when Coincheck suspended most of the services without warning. On the company’s website at about 1:00 pm JST (04:00 UTC) there was information that the deposit, trading, and withdrawal of XEM, lock token NEM was frozen. Approximately in half an hour, it was informed about the suspension of the withdrawal of all other tokens and the Japanese yen. An hour later, the exchange stopped trading all assets except bitcoin. According to the latest data, all methods of making money were blocked, including the use of credit cards.

According to the management of the exchange, Coincheck is considering the possibility of compensating its customers for damage. In addition, at a press conference it was announced that Coincheck had not been registered with the Japanese Financial Services Agency, but now it is planned to register. The chairman of the board of the exchange declared his “deep regret” over the recent events.


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