Over the weekend, a popular cryptocurrency exchange called Coincheck admitted that hackers had breached its systems and looted digital funds worth over $530 million.
What happened: The Tokyo-based exchange says the money was stolen from an internet-connected money storage system known as a “hot wallet,” which is used for easy access to funds. The hack took place at 2:57 AM on Friday in Tokyo, but it wasn’t noticed for another eight hours. The firm says it knows where the funds went and is tracking them.
Refunds due: Users can rest easy(ish), because Coincheck promises that it will refund over $423 million of the lost money.
Next up: Japan’s financial regulator has already said it will inspect all the nation’s crypto exchanges. More broadly, expect the breach to lend weight and urgency to the many global clampdowns on crypto activity—such as South Korea’s proposed trading ban.