What is happening here?

One of Japan’s largest cryptocurrency exchanges has halted all withdrawals amidst rumors of a large-scale hack. Ripple worth $123 million was withdrawn from its wallet on Friday January 26 along with a single withdrawal of 500 million NEM, with the altcoin’s foundation president Lon Wong then tweeting “It’s unfortunate that coincheck got hacked. But we are doing everything we can to help.” Upon news of the alleged hack surfacing, the price of NEM dipped sharply, leaving it down 19% in the past 24 hours.

OK, we do not yet know if this was a hack. This may have been a legit withdrawal, though one that the regulators bots will be hunting down.

But we have a sandbox rule, no humans have access to secure element keys.  The processor can generate new keys from a unique key, all keys kept in hardware protected  memory, not on the standard memory map.  No key seen by human. The keys only used indirectly via protected calls to the kernel.  A group of fenced processors can have a shared key, but the no humans allowed rule holds.  Intel should have all these options available, go pester the company.

Legally, this means you, the customer, own a share of those keys and processor is legally your escrow officer.  If anything gets lost it is an act of god on the technology or an error by Intel or your coin base owners are crooks.  Your contract was violated, go to smart contracts court, sue one or all of the parties, especially god.