Coincheck, one of Japan’s biggest cryptocurrency exchanges, announced the loss of more than 500 million NEM tokens, valued at about USD 400 million.

According to Bloomberg, which refers to Coincheck representatives, the coins were sent “illicitly” outside the venue, while the firm is working to ensure the safety of all client assets.

“We know where the funds were sent, and we are tracing them and if we’re able to continue tracking, it may be possible to recover them,” Co-founder of Coincheck Yusuke Otsuka remarked.

Earlier Coincheck announced that it had suspended all withdrawals, halted trading in all tokens except Bitcoin, and stopped deposits into NEM coins.

Bloomberg writes that the disappearance likely ranks among the biggest losses or thefts of investor assets since the advent of digital currencies with the launch of Bitcoin in 2009.

22.01.2018 | 09:38 Experts uncover losses and vulnerability of crypto market

In less than 2 days, Coincheck announced that it would use its own capital to reimburse customers who lost money in Friday’s theft.

In particular, the company will repay all 260,000 users impacted by the theft of NEM coins, at a rate of 82 U.S. cents for each coin. According to the data, a total of 523 million coins were stolen. The timing of the reimbursement and the application process are currently under consideration.

“The attack shocked Japanese policy makers, who introduced legislation last April precisely to prevent such disasters, and piled pressure on global crypto markets wary of rising scrutiny from regulators,” the agency writes.

Coincheck was founded in 2012. According to the data of July last year, the company has 71 employees. It is headquartered in a popular area for startups in Tokyo.

NEM was launched in 2015 and is the 10th biggest cryptocurrency.

The partner of Fintech section is