>> It's one of the biggest ever hacking heists of digital money. More than $500 million worth of so-called NEM coins gone in a flash on Friday in Japan, stolen from Tokyo-based Coincheck. The cryptocurrency exchange was forced to freeze trading on all currencies except Bitcoin.>>
> Coincheck promised to repay nearly 90% of what was taken with its own funds, a payout in yen, not digital coins, to around 260,000 affected customers.
If that wasn't punishment enough, Reuters' Tom Wilson reports Tokyo's financial regulator has warned Coincheck to get its act together.>> He wants a report on his desk within two weeks about the hacking incident, what happened and how the exchange is going to prevent another occurrence. The FSA, the Financial Services Agency, also said that it's going to inspect Japan's other cryptocurrency exchanges.
It's very worried about a similar hacking instance happening and wants to ensure that security is tight enough at other exchanges in Japan.>> The Coincheck hack comes at a crucial time for cryptocurrencies around the globe. Policymakers are wrestling with how to regulate them, worried over investors losing big to the markets or criminals.
>> The Coincheck hack has really drawn into attention again how these exchanges look after customer's money, both in cash as well as storing cryptocurrencies on the exchanges themselves. For Coincheck, it stored the NEM currency in what's called a hot wallet. That means that it's connected to the Internet.
Many advocates suggest storing cryptocurrencies in cold wallets, which means they're not accessible from the Internet and therefore, harder to access.>> NEM coins can actually be traced. And the NEM Foundation in Singapore says it has a full account of all of Coincheck's lost coins. However, it also says it has no way to return the stolen funds to their owners.
And so far, the hacker hasn't moved any of the money to a personal account or onto another exchange.