Blockchain News 27 January 2018

$524M NEM stolen in hack of Japanese exchange Coincheck

Japanese cryptocurrency exchange Coincheck confirmed that $524 million worth of digital currency has been stolen—likely making it the largest single hack on an exchange, even outweighing the Mt. Gox breach of 2014.

That’s according to Japanese newspaper Asahi Shimbun, which reports that Coincheck said that some 500 million units of a cryptocurrency known as NEM, worth about 58 billion yen, had been taken from customers’ wallets.

The stake has now fallen to about $430 million, with spooked investors selling off their holdings following rumors of the hack earlier Friday.

Coincheck is reportedly still trying to determine the nature of the attack, but noted that other cryptocurrencies were not impacted. Some critics point to Coincheck’s lack of multi-sig wallets, in which multiple keys are needed to authorize a transaction, as part of the vulnerabilities that facilitated the hack.

Blockchain News 27 January 2018

Canadian energy company will use natural gas to mine cryptocurrency

With natural gas prices expected to remain low, one Alberta producer has come up with a novel way to boost its bottom line: using its gas stream to power computer servers that will mine potentially lucrative cryptocurrencies such as Bitcoin.

Iron Bridge Resources Ltd. announced it would form a new subsidiary called Iron Bridge Technology in an attempt to join the cryptocurrency and blockchain craze – but also to arbitrage the difference between the value of Bitcoin, currently valued at US$11,188 per coin, and AECO gas, currently valued at $1.98 per thousand cubic feet.

Iron Bridge plans to burn gas and produce electricity, and use that electricity to power computer hardware mining digital currency.

Assuming that 215 kilowatt hours of electricity are needed to produce one Bitcoin, Iron Bridge could earn US$49 per mcf for its gas.

That’s more than 30 times the price Iron Bridge currently receives for its gas, assuming current AECO and Bitcoin prices.

“As far as I’m concerned, every dry gas producer in the industry should get a lift on this news, because boards of directors are going to wonder why companies couldn’t dedicate a portion of their production to this.” GMP FirstEnergy vice-chairman and co-head of energy sales and trading Trent Boehm said.

Blockchain News 27 January 2018

Author: Sara Bauer

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