“The Biggest Theft In History”: Coincheck Hit For $532 Million in NEM

January 30, 2024         By: Steven Anderson

The notion of stealing $532 million outside of an “Ocean’s 11” style plot is outlandish by any means; how in the world would you carry that kind of money? Semi truck? Cargo plane? But when cryptocurrencies are involved, well, the matter becomes a whole lot easier. Just ask Coincheck, who recently shut down all withdrawals in the face of what ultimately became a theft of around $532 million.

The Coincheck cryptocurrency exchange, located in Japan, found that a payment in Ripple—one of the leading cryptocurrencies around—valued at $123 million had left the exchange’s wallet on Friday. This payment was largely considered to be an inappropriate transfer, and the exchange’s president, Lon Wong, subsequently emerged to note that the theft was now effectively the “biggest theft in the history of the world.”

Given reports that a 2005 heist of the Banco Central in Brazil took $70 million, it does seem that Coincheck now has the dubious honor of being the largest theft in history. But it didn’t stop at the $123 million, reports noted. Word from Nikkei said that Coincheck reported the “likely inappropriate transfer” of $532 million in NEM, a newer cryptocurrency that’s growing in popularity, to police.

It’s worth noting, too, that Coincheck isn’t currently registered with the Financial Services Agency in Japan, an entity devoted to overseeing exchanges. Exchanges like Quoine and bitFlyer are, however, and that may well have made Coincheck a fatter target than expected. Coincheck has also apologized to its user base and hopes to restore service in rapid fashion.

The sheer portability of cryptocurrency—as well as its massive value in many cases—will likely make it worthy prey for criminals until either it all collapses or until some kind of incredible security measures are taken. The idea that we may well have just seen the biggest theft in the world, and one directly related to a mobile payments system, should give us all pause here.

While it likely won’t stop cryptocurrency altogether, the end result should be enough to make us rethink the concept more thoroughly. Taking greater care with our cryptos might well be a smart move in light of all this.