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Coincheck Will Refund Losses of NEM Hack Victims

Coincheck Will Refund Losses of NEM Hack Victims

Coincheck will refund losses of NEM hack victims as soon as next week. During the press conference, the CEO of Coincheck, Koichiro Wada, and the COO Yusuke Otsuka have stated that the platform will release more details in relation to the compensation process in the next few days. 

9 March, AtoZForex One of the Japanese cryptocurrency exchanges, Coincheck, has announced that it will start the compensation for the customers that have suffered losses due to its January hack attack. The process will start already next week.

Coincheck Will Refund Losses of NEM Hack Victims

During the press conference, the CEO of Coincheck, Koichiro Wada, and the COO Yusuke Otsuka have stated that the platform will release more details in relation to the compensation process in the next few days. The officials have also shared their plan to resume trading services for some of the cryptocurrencies on Coincheck next week.

Firstly, the Japanese exchange has confirmed that some 500 million NEM tokens have been stolen back on January 26. At that time, the overall coins’ worth has accounted for around $530 million. Then, after the hack attack, the platform has also informed the public that it would compensate each stolen token at a rate $0.81 per token. The overall amount has accounted for almost $420 million.

The $530M Coincheck cryptocurrency theft was one of the biggest cybersecurity hacks in history. The theft also points out the vulnerabilities in trading an asset that global authorities are trying to get hold of. The hack also highlights the wider risks for Japan as it looks into leveraging the fintech industry to boost the economic growth.

FSA Crypto Exchanges Scrutiny

After the hack, Japanese financial regulator, the Financial Services Agency (FSA), has taken an initiative to investigate the security measures of Coincheck’s platform. The financial watchdog also looked into its fiscal capacity for refunding victims of the attack. As the FSA probe has continued, the customers of the exchange also filed a class action lawsuits asking for reimbursements of their losses.

The plan of Coincheck to refund users appears amid an initiative by the FSA to inspect other cryptocurrency exchanges in Japan. The regulator aims to prevent such events from occurring.

This Thursday, the Financial Services Agency (FSA) has stated that it has issued suspension orders to two exchanges in Japan. The exchanges that have received the orders are the FSHO and Bit Station. The suspensions are effective for a period of the whole month, starting from today.

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Disclaimer: The views and opinions expressed in this article are solely those of the author and do not reflect the official policy or position of AtoZ Markets.com, nor should they be attributed to AtoZMarkets.

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