After Hack, Coincheck Exchange Handles $373 Million In Withdraws – In One Day

Yesterday, Japan’s Coincheck Exchange reinstated withdraws and investors rushed to take their money out of the recently hacked exchange.

According to Coindesk, $373 million was withdrawn as the exchange partially reopened after being hacked last month. Hackers stole $500 million-worth of NEM tokens.

The exchange hopes to normalize and recover from the hack. However, dramatic withdraw numbers could indicate that its customer base has little confidence. This may mean problems as Coincheck attempts to recover from the hacking setback.

An additional cause for concern for Coincheck is recent scrutiny from Japan’s financial regulator, the Financial Services Agency (FSA). The group conducted an on-site check after the major hack to ensure that the firm’s security measures were strong enough to protect the remaining funds on the exchange.

After the check, the FSA announced that Coincheck, along with 15 other crypto exchanges, hasn’t obtained full licensing as a result of ongoing security concerns.

Unfortunately, there is no timeline for when or how Coincheck will compensate victims of last month’s hack at this time. They do, however, plan to continue operating per chief operating officer Yusuke Otsuka.

 

Litecoin Founder Charlie Lee Calls Litecoin Cash A Scam

While many people believe Litecoin Cash could be a Litecoin fork or in some other way related to the original Litecoin, the founder of the currency warns investors it isn’t.

In fact, Charlie Lee calls Litecoin Cash a scam that attempts to dupe people by cashing in on the popular Litecoin name according to a Bitcoinist report.

Unfortunately, without any regulation, anybody with the knowledge can create any cryptocurrency and name it whatever they want. This situation leads to confusion and sometimes even straight out scams, and investors end up losing money.

On Twitter, Lee tweeted, “PSA: The Litecoin team and I are not forking Litecoin. Any forks that you hear about is a scam trying to confuse you to think it’s related to Litecoin. Don’t fall for it and definitely don’t enter your private keys or seed into their website or client. Be careful out there.”

Typically, when a fork occurs, people who own coins receive some of the tokens associated with the fork as well. This is something investors typically appreciate. Litecoin Cash offers 10 tokens for every one LTC held. However, the catch is, you have to import your private key from your Litecoin wallet into new Litecoin Cash wallet.

And that’s where the possible scam comes in. Is it truly a scam? It’s tough to know for certain.

For its part Litecoin Cash posted the following on its website: “We’re using the Litecoin Cash name simply because it has become customary in recent months for a coin which forks a blockchain to prefix its name with the name of the coin being forked. This practice has become a widely understood convention. We’re not associated or affiliated with Charlie Lee or any of the Litecoin team in any way; we are big fans though.”

Be aware and keep yourself safe.

CFTC and SEC Warn Against Crypto Pump And Dump Scams On Social Media

Both the  Commodity Futures Trading Commission (CFTC) and the Securities and Exchange Commission (SEC) warned against cryptocurrency pump and dump scams.

On Thursday, The CTFC issued a release detailing the possibility of scams with pumping and dumping coins. The released joined its earlier warning this month about investing in crypto retirement accounts, according to Coinbase. This warning comes after an earlier SEC warning of similar scams surrounding Initial Coin Offerings (ICOs).

The CTFC’s statement said, ”Customers should not purchase virtual currencies, digital coins, or tokens based on social media tips or sudden price spikes. Thoroughly research virtual currencies, digital coins, tokens, and the companies or entities behind them in order to separate hype from facts.”

This sage advice serves any crypto investor well. Typically you don’t know who’s behind a keyboard pumping something up online.

In its statement, the CTFC outlined how a scam of this type might look.

It wrote, “Some pump and dumps use false news reports, typically about a famous high-tech business leader or investor who plans to pour millions of dollars into a small, lesser-known virtual currency or coin. Other fake news stories have featured major retailers, banks, or credit card companies, announcing plans to partner with one virtual currency or another. Links to the phony stories are also accompanied by posts that create false urgency and tell readers to buy now.”

The good news is that although its scope is limited, the CTFC intends to seek out and stop those who use these types of methods.