Japanese Coincheck Exchange Stops All Withdrawals

Coincheck exchange, the largest Japanese exchange, stopped the withdrawal of all cryptocurrencies.
Coincheck exchange has frozen all withdrawals as a Ripple payment worth $123 million disappeared its wallet on Friday morning.
This was followed by suspending NEM deposits.
As stated in company’ blog:
“Depositing NEM on Coincheck is currently being restricted. Deposits made to your account will not be reflected in your balance, and we advise all users to refrain from making deposits until the restriction has been lifted.
We sincerely apologize for the inconvenience this has caused everyone. Please follow the official Coincheck blog and our official social media accounts for updates.”

Later, the restriction was extended to the purchase and sale of NEM. Then it was extended to withdrawals.
“ All withdrawals from the platform are currently restricted, including JPY. Thank you for your understanding. We are doing our utmost to resume normal operations as soon as possible.”

There have been rumors today in Twitter. People talk that Coincheck’ve had a hacking attack as a result of which $600 mln of NEM has left the exchange.
Coincheck exchange does not confirm this information. The cryptocurrency exchange on social networks promises that to provide information about what is happening when it is possible. It is noteworthy that one of the largest crypto exchanges in Japan does not have a license from financial regulator.

Previous Hacker Attacks

It reminded the investors the case with Japanese bitcoin exchange Mt Gox.  In 2014 it became the target of hackersю The exchange lost 850.000 bitcoins. It was forced to declare bankruptcy. The cost of hacked bitcoins was estimated at $473 million.
At that time Mt. Gox case led to frantic activity in the virtual community, especially among people who was related to cryptocurrencies. Several other bitcoin exchanges published a joint statement that the funds they stored were protected and safe.

Nowadays Japan recognized Bitcoin as a legal currency. According to official datas, one third of world bitcoin transactions in December were proceeded in JPY.
In recent months, authorities in various countries are looking for ways to limit strictly the circulation of digital currencies. Meanwhile, the US wants to prevent their use for money laundering and financing of illegal transactions. But it doesn’t intend to liquidate digital currencies as a class.

Many financial analysts and experts openly call the bitcoin a bubble. Thus, for example, according to billionaire investor George Soros, the cryptocurrency is speculation, which is always based on a misunderstanding. He drew attention to the fact that the bitcoin rate can vary by 25% per day. That means that it can not be used, for example, to pay salaries. Another expert, Nobel laureate Robert Shiller, states that the rise the bitcoin does not mean that the future is behind it, on the contrary, the most popular cryptocurrency will be “total collapse”.

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