Coincheck To Start Repaying Customers Affected By $530 Million Hack Today

Elias Hubbard
March 13, 2018

Japanese cryptocurrency exchange Coincheck is starting to refund customers that were affected by the January 26 hack of around $534 mln worth of NEM, as well as allowing the withdrawal and sale of certain cryptocurrencies, according to two press releases published today, March 12, on Coincheck's website.

Coincheck, based in Tokyo, spent ¥46.3 billion ($435 million) to compensate 260,000 customers who had kept a digital currency called NEM at Coincheck. The compensation, which is estimated to be worth $420m, will be deposited into users' Coincheck accounts and will start this week.

In a blog post published today, the exchange said that it would refund victims 88 JPY, equivalent to $0.83 Dollars that would be multiplied by the number of NEM tokens they held at just before midnight, Japan time, on the 26th of January 2018.

Coincheck also plans to lift curbs from Monday on the trading and withdrawal of some cryptocurrencies, including bitcoin, that it had imposed as it investigated the late-January heist.

Last week, the Financial Services Agency took administrative action against seven digital currency exchanges across the country, ordering two of them to suspend business in the first such penalty against cryptocurrency exchanges. The exchange further stated that it will take more time to resume services for other assets.

Subsequently, the report said, the hackers were able to gather private keys to large amounts of NEM weeks before the actual heist, during which time Coincheck had no proper tools to detect such communication between itself and external servers. With a second administrative penalty having been issued by the agency, Coincheck is also required to submit a written plan by March 22 for its plans for system improvements.

Other reports by Click Lancashire

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