As cryptocurrencies become popular, hacks targeting popular exchanges and trading platforms are growing as well. It was reported earlier this week that one of Japan’s biggest cryptocurrency exchange Coincheck was hacked. The hack resulted in $400 million worth of NEM coins being stolen. Coincheck has now confirmed that it’s going to refund customers who were affected by this hack.
Coincheck confirmed that the money was stolen from the platform because the NEM coins were kept in a hot wallet. A cold wallet is not connected to the internet which makes it very difficult for hackers to steal money from it.
A hot wallet is the exact opposite and since the NEM coins were kept in the hot wallet because Coincheck was having a hard time managing the cold wallet, the coins were stolen in the hack.
Coincheck has confirmed that it’s going to use its own capital to reimburse customers who lost money in this $400 million hack. It’s going to repay all 260,000 customers that were impacted by the NEM hack at a rate of 88.549 yen or 82 U.S. cents for each NEM coin. Coincheck previously confirmed that 523 million coins were stolen in this hack.
“The timing of the reimbursement and the application process are currently under consideration,” the company said in a statement.