What was Coin-check Hack?
Coin-check’s chief operating officer Yusuke Otsuka, said that around $523 million NEM coins were sent from a NEM address at Coin-check. Over eight hours later, Coin-check noticed an abnormal decrease in the balance.
Coin-check said the NEM coins were stored in a “hot wallet” instead of a “cold wallet.” Company President Koichiro Wada refers technical difficulties and shortage of staff.
Is Hot Wallet Vulnerable to hacking?
Hot wallets are connected to the internet, therefore vulnerable to hacking. Experts warn that holding large sums in hot wallets is the equivalent of carrying large amounts of cash in person.
How Cold Wallet is secure then Hot Wallet.
Cold wallets, such as Trezor and Ledger (Hardware Wallet), are devices which can be as small as a USB stick and can be stored offline. Some keep them in a safe.
Hardware wallets are adding an extra layer of safety to protect your cryptocurrencies in the event that, your computer is compromised by a virus or malware which could steal your private keys.
Can stolen NEMs Be Tracked?
The hacker has not moved any of the funds, it would create an automated tagging system within two days to follow the coins and identify any account which receives them.