Coincheck to compensate hack victims as it resumes operations next week

Japanese cryptocurrency exchange Coincheck, which were hacked in January announced on Thursday that it plans to resume operations next week. According to Nikkei, the exchange will also begin to repay customers who lost their coins in the heist.

Since its hack, Coincheck has received two improvement orders from Japan’s Financial Service Agency, one of which is an order to repay victims of the hack. The second improvement order also instructed Coincheck to carry out a holistic review of its management strategy.

Partial resumption

Though Coincheck is yet to release full details of their resumption plan, it appears they will proceed with a partial resumption and trade only certain “safe” coins. The FSA is currently auditing the exchange and suspended fiat withdrawals until they complete the audit process. The company will submit the report of the improvement order by March 22 according to a press statement.

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The Coincheck NEM (XEM) Heist

On January 26, Coincheck was hacked and NEM (XEM) tokens worth about $550 million belonging to over 260,000 customers. According to reports from an investigation, the hack was caused by a malware sent via email to several Coincheck employees. The exchange was subsequently shut down while many customers started request withdrawals.

Coincheck Chief Operating Officer, Yusuke Otsuka stated on Thursday that the company has already paid 60 billion yen in withdrawals. Also, speaking about the hack, Coincheck’s CEO, Koichiro Wada suggested that the sudden increase in the value of cryptocurrencies coupled with an inability to hire enough personnel at the time left the company prone to attack. He said he may consider resignation to take responsibility for the hack.

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Recently, researchers in Canada claimed to have traced the stolen coins to Canada.

A Nation-wide Response to the Hack

Soon after the hack, the FSA stepped up its regulatory efforts. The regulators suspended two exchanges and issued improvement orders to some others. The crypto community as a whole responded to restore confidence in the country. Last week, registered cryptocurrencies in Japan agreed to for a self-regulatory body.

Legal Disclaimer: Smartereum does not endorse any content or product on this page. While we aim at providing you all important information that we could obtain, readers should do their own research before taking any actions related to the company and carry full responsibility for their decisions, nor this article can be considered as an investment advice. Investing in cryptocurrencies and other Initial Coin Offerings ("ICOs") is highly risky and speculative, and this article is not a recommendation by Smartereum or the writer to invest in cryptocurrencies or other ICOs. Since each individual's situation is unique, a qualified professional should always be consulted before making any financial decisions. Smartereum makes no representations or warranties as to the accuracy or timeliness of the information contained herein. As of the date this article was written, the author owns small amounts of cryptocurrency.

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