CryptoWatch: Bitcoin Prices Slide As Japan Cracks Down On Coincheck After Hack

Bitcoin prices slipped Monday as investors dealt with news of a crackdown on a cryptocurrency exchange in Japan after the biggest theft of digital assets since 2014.

Spot bitcoin prices BTCUSD, -3.40%  slid 0.2% to $11,201, and ether coins on the Ethereum blockchain fell 5.1% to $1,184.46, according to prices on research and data site CoinDesk.

Tokyo-based exchange Coincheck last week reported 523 million units of virtual-currency tokens on the NEK blockchain — a value of about $530 million — had been stolen. On Monday, Japanese authorities ordered the exchange to beef up security and come up with measures to prevent future incidents, according to reports in The Wall Street Journal and other media.

Read: Is Robinhood going to challenge Coinbase for dominance in bitcoin and Ethereum trading?

Over the weekend, Coincheck said it would use its own funds to pay back customers who were hacked to the tune of 46.3 billion yen ($426 million).

The hack was revealed by the exchange on Friday, and marks the single biggest crypto breach in the nine-year existence of bitcoin, eclipsing the $450 million bitcoin lost in the Mt. Gox breach of 2014.

Bitcoin trading on Cboe Global Markets Inc. for February XBTG8, -3.04%  was flat at $11,170, while February futures on the CME BTCG8, -2.91%  gained 0.5% to $11,225.

RECENT NEWS

When The Gate Comes Down

A Stress Test Rather Than a ScandalApollo Debt Solutions is not a blow-up story. It is something arguably more instructi... Read more

What If The Investment Industry Is Benchmarking The Wrong Things?

  Investment management is built around benchmarking.  Fund managers compare themselves a... Read more

SpaceX Is Looks To Make History

The Biggest Bet in Wall Street History: SpaceX's $1.78 Trillion IPOThere are moments in financial history that stop you ... Read more

Gyrostat June Market Outlook: When Low Volatility Conceals Structural Risk

This monthly Gyrostat Risk-Managed Market Outlook does not attempt to forecast market direc... Read more

Why Low Volatility Is Not The Same As Low Risk

Why Low Volatility is Not The Same As Low Risk Some of the worst-performing portfolios in... Read more

Gyrostat May Market Outlook: When The Cost Of Protection Falls - Signals For Portfolio Positioning

This monthly Gyrostat Risk-Managed Market Outlook does not attempt to forecast market direction. It... Read more