This thread desperately needs some input from Director.
I reckon it would add to the variety of views here.
"One of Japan's largest digital currency exchanges has lost hundreds of millions of dollars worth of virtual money after hackers broke into its network.
... What is NEM?
It's a cryptocurrency, just like bitcoin or ethereum.
According to The Verge, it's the eighth largest cryptocurrency in the world by volume.
At the moment, Coincheck says the theft has been limited to NEM, but after announcing the theft it restricted dealings in most other cryptocurrencies too..."
I won't pretend I understand NEM any more than I do Bitcoin, but I don't see them being any or much safer than the currency or banks I grew up with. Honestly, just all seems like a new way to get scammed is all.
And as I don't have enough money to be bored by traditional scammers trying it on with my limited resources now. I think I won't be all that involved with cryptocurrencies, hopefully.
That ABC article left out one detail. CoinCheck left the NEM in low security wallets. For some reason the mainstream press left this out their reporting.
As Cointelegraph reported on January 26, $534 million worth of XEM were stolen from low security hot wallet that lacked multi-signature security measures. During a press conference covered by Cointelegraph, Coincheck executives stated that all of the funds were stored in a hot wallet or an online wallet, which left user funds vulnerable to the security breach.
“Hack update: NEM is creating an automated tagging system that will be ready in 24-48 hours. This automated system will follow the money and tag any account that receives tainted money. NEM has already shown exchanges how to check if an account has been tagged. So the good news is that the money that was hacked via exchanges can't leave,” said a NEM spokesperson.
It's a wild world in the web.