The Most Infamous Hacker Attacks and Their Aftermath
In spite of the difficulties it has encountered, the world of cryptocurrency remains attractive to a wide range of individuals due to its offerings of decentralization, transparency, and security. These qualities appeal to both passionate crypto supporters and those who, unfortunately, are seeking to take advantage of the system. Some of the most significant security and data breaches have not only had critical financial and emotional impacts but have also driven the advancement of the cryptocurrency sector.
Let's continue the series of posts dedicated to the most influential and well-known crypto attacks. One of the attacks we would like to discuss is a notorious attack on Coincheck. The Japanese cryptocurrency exchange Coincheck was infiltrated on January 26, 2018, causing substantial damage to thousands of users. Later, it was found that the breach was possible due to inadequate security measures, such as holding coins in vulnerable hot wallets and other violations.
Coincheck, in a commendable move, utilized its own resources to reimburse all affected customers for their losses, a step that not only restored users' faith but also ensured the continuity of its operations. This incident had a profound impact on crypto regulation in Japan, prompting the country to reevaluate its approach to overseeing cryptocurrency exchanges. The breach compelled the Financial Services Agency (FSA) to tighten its rules on exchange licensing and reconsider its authorization to operate for companies that have a long-standing presence in the market and are in the registration process (as was the case with Coincheck).
Learn more about it and other hacks on the Kinetex blog.
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