Coincheck Allows Limited Trading As It Begins Crypto Hack Refunds

The Japanese giant, Coincheck kickstarts a project to reimburse the victims of a hack that cost users of $530 million in January.

Coincheck, through a blog post, announced that it is making efforts to refund users what they lost during a hack. The post states that the users will be refunded at the rate of 88.549 yen per NEM token. This is in line with the original compensation plan.

Preserving The Integrity Of The Exchange
The exchange confirmed that its platform was hacked on the 26th of January and made an announcement about a compensation plan that would involve a payout of about $420 million. During a press conference on Thursday, last week, the COO and CEO announced that this week would mark the beginning of the compensation plan. This will be in response to the numerous class actions suits the exchange has faced and the probe by the Financial Services Agency.

SEE ALSO:   Lisk price predictions 2018: The future looks quite bright for the cryptocurrency - USD / Lisk price analysis - LSK / Lisk Coin Price Today - News Today

Today, Monday 12th of March, the exchange announced that it would resume withdrawals and trading of cryptocurrency. However, only trading for ETH, XRP, BTC, BCH, ETC, AND LTC will resume. Efforts are being made by the exchange to resume other services from other assets.

As Coincheck struggles to get its services up and running, new reports reveal that the exchange may have been compromised long before the hack. The breach was from malware in the internal computer systems. Reports show that hackers had sent phishing emails to employees at Coincheck earlier that month. The virus was injected into the emails that were clicked by the staff.

SEE ALSO:   JP Morgan internal Cryptocurrency prediction report: Bitcoin, Bitcoin Cash, Ethereum, Ripple, Cardano, Dash, Litcoin etc are here to stay - Cryptocurrency News Today - News Today

The hackers gathered private keys to large sums of NEM before they performed the attack. Coincheck had the window to prevent the attack by detecting the communication between external servers and its system, but it didn’t.

Their lack of security isn’t impressive and was what sparked the probe by the FSA.

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.

Leave a Comment

We Are Hiring

Click here if you would like to join one of the fastest growing blockchain news companies in the world!

The Smartest Way To Stay On Top Of Crypto!

Subscribe to our daily newsletter, and we’ll send you the latest Ethereum, Bitcoin and other crypto news!

No, thanks!

Promise we won’t spam you!