Coincheck Not Certain about Reopening after $500 Million Hack

Coincheck

Coincheck Not Certain about Reopening after $500 Million Hack

Coincheck

Coincheck, a major Japanese crypto exchange, is reportedly not sure of reopening its exchange after suffering a $500 million hack in January,

A cryptocurrency miner and analyst based in Japan, MineCC reported that Coincheck president Oki Matsumoto said:

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“I do not know the prospectus of reopening.”

Coincheck Nine months back suffered the largest security breach in the history of the cryptocurrency market, losing more than $500 million in XEM, the native currency of the NEM blockchain, to an unknown group of hackers.

Because it is not able to compensate all of the investors affected by the hack, Coincheck reached a deal with Monex, a publicly listed company in Tokyo, to obtain sufficient funds to refund its investors.

The investigation into Coin check involved law enforcement, local intelligence agencies, and the Japanese government in an attempt to salvage any portion of the stolen funds to compensate investors on the platform.

Coin check lost its license to operate as a cryptocurrency exchange in Japan after the incident and was requested by the government to reapply as a new executive entered the seat.

Monex this week revealed that throughout July and August, the platform has allowed existing investors to sell their holdings in cryptocurrency on the exchange.

“Since service suspension in January 2018, Coincheck only allowed existing customers to sell their cryptocurrency. This limited revenue stream resulted in segment loss of ¥ 0.6 B [around $5.3 million]. Coincheck has improved in governance, internal control and internal audit, aiming for full service resumption.”

The possibility of Coin check obtaining the approval from the FSA remains significantly low as a result of the magnitude of the security breach.

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