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Coincheck compensates losses to victims of hacking

Japanese cryptocurrency exchange Coincheck has announced that it will begin to pay compensation to customers who suffered losses in the January hacking, starting next week.

08.Mar.18 4:53 AM
By Daria Zaytseva


Coincheck compensates losses to victims of hacking

At a press conference on Thursday, Coincheck CEO Koichiro Wada and COO Yusuke Otsuka said that the platform will provide more detailed information about the compensation process in the coming days. They also showed another plan for the resumption of trading services for some cryptocurrencies next week.

Coincheck first confirmed that on January 26, about 500 million NEM token had been stolen, which at that time cost about $ 530 million. Shortly after the incident, the platform announced that it would compensate each stolen token at a rate of $ 0.81 per token - an amount of about $420 million.

After the breach of Japan's financial regulator, the Financial Services Agency (FSA), soon intervened to test the platform's security measures and its financial capabilities to reimburse the victims of predation. As the investigation continued, the exchange’s customers also filed class action lawsuits demanding that Coincheck accelerate the recovery of its losses.

Coincheck's plan to refund users comes amid a wider effort by the FSA to more closely scrutinize crypto exchanges in Japan to try and stop such events from reoccurring.

After a thorough investigation of the remaining unlicensed exchanges in Japan, the FSA has issued administrative fines to seven trading floors - two of which were ordered to suspend service, while everyone was instructed to submit a written security plan until March 22.

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