The Japanese authorities ordered Coincheck to provide …

Japanese authorities ordered Coincheck to provide a report on security breaches

The Japanese Financial Services Agency (FSA) is taking steps to strengthen the security in the crypto industry in connection with the recent attack on cryptocurrency exchange Coincheck last week.

The attack, which became known on Friday after the exchange unexpectedly suspended most of its services, stole more than 500 million XEM – these are the tokens of the NEM network – which is currently about 420 million dollars.

According to the latest statement from Coincheck, the FSA ordered the exchange to investigate the vulnerabilities that led to the attack and submit a governance improvement report by February 13. The exchange will also need to provide a detailed report on the facts and causes of the problem, according to FSA officials..

According to today’s Nikkei article, the FSA issued this directive during a press conference, adding that “inappropriate management of systemic risk has become the norm at Coincheck.” This negligence led to the theft of more than even the amount stolen during the infamous hacker attack on the Mt. Gox.

Nikkei Writes FSA Expands Investigation To Include Onsite Inspections To Other Cryptocurrency Exchanges In Japan To Prevent Potential Recurrence.

The Japanese authorities ordered Coincheck to provide ...

Earlier, the NEM.io foundation made a statement to Coincheck, a representative of which suggested that the hacker attack was possible due to insufficient security measures.

“We advise all exchanges to use our multi-signature smart contract, which is one of the best. Coincheck did not use it, which could have caused it to be hacked. They were very relaxed about their safety, ”said Foundation President Long Wong.

Over the weekend, Coincheck announced that it will pay compensation to 260 thousand NEM holders who have lost their funds, but has not yet announced a detailed payment plan..

The Japanese authorities ordered Coincheck to provide ...

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