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Hacked Japanese exchange Coincheck to repay depositors $425 million

Should this proceed smoothly, it would be the most graceful handling of a crypto-heist to date.

Friday last week, Japanese cryptocurrency exchange Coincheck suffered the biggest theft in world history after hackers stole around 523 million NEM tokens (XEM) from its hot wallet, effectively dethroning the infamous Mt Gox hack.

Yesterday, the exchange has issued a statement saying “all affected users will be repaid in JPY via Coincheck Wallet” using their company funds.  The reparations policy indicates that 260,000 users will be repaid based on NEM trading value pulled from cryptocurrency exchange Zaif—at 88.549 JPY per NEM. On top of investigating the heist, the company still has to determine how to roll out the repayment, and for how long.

“We realize that this illicit transfer of funds from our platform and the resulting suspension in services has caused immense distress to our customers, other exchanges, and people throughout the cryptocurrency industry, and we would like to offer our deepest and humblest apologies to all of those involved. In moving towards reopening our services, we are putting all of our efforts towards discovering the cause of the illicit transfer and overhauling and strengthening our security measures while simultaneously continuing in our efforts to register with the Financial Services Agency as a Virtual Currency Exchange Service Provider.”

Meanwhile, the Japanese Federal Services Agency (FSA) has ordered Coincheck to improve its practices based on the Payment Services Act, they posted in another release today. The order, which Coincheck “earnestly accepts,” requires that the company submit a report by February 13 containing details on the investigation of the incident, support of its customers, and stronger mitigation and prevention measures.

In a Tweet, NEM President Lon Wong extended his support to Coincheck, saying they are doing everything they can to help. He clarified, however, that NEM will not be forking.

Note: Tokens in the SegWit chain are referred to as SegWit1X (BTC) and SegWit Gold (SWG) and are no longer Bitcoin. Bitcoin Cash (BCH) is the only true  Bitcoin as intended by the original Satoshi white paper.  Bitcoin BCH is the only public block chain that offers safe and cheap microtransactions.
Note: Tokens on the Bitcoin Core (segwit) Chain are Referred to as BTC coins. Bitcoin Satoshi Vision (BSV) is today the only Bitcoin implementation that follows Satoshi Nakamoto’s original whitepaper for Peer to Peer Electronic Cash. Bitcoin BSV is the only major public blockchain that maintains the original vision for Bitcoin as fast, frictionless, electronic cash.

COMMENT

JVCEA to tighten crypto storage regulations in Japan – CRYPTOTIMES.MOBI

[…] exchanges have been hacked this year, resulting in major losses. The first was in January when Coincheck was attacked and hackers made off with around $523 million in NEM coins. The assets had allegedly […]

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JVCEA to tighten crypto storage regulations in Japan | Bitcoin price media

[…] exchanges have been hacked this year, resulting in major losses. The first was in January when Coincheck was attacked and hackers made off with around $523 million in NEM coins. The assets had allegedly […]

Your comment is awaiting moderation.

JVCEA to tighten crypto storage regulations | Bitcoin price media

[…] exchanges have been hacked this year, resulting in major losses. The first was in January when Coincheck was attacked and hackers made off with around $523 million in NEM coins. The assets had allegedly […]

Your comment is awaiting moderation.

JVCEA to tighten crypto storage regulations – CRYPTOTIMES.MOBI

[…] exchanges have been hacked this year, resulting in major losses. The first was in January when Coincheck was attacked and hackers made off with around $523 million in NEM coins. The assets had allegedly […]

Your comment is awaiting moderation.

Crypto theft cases in Japan ‘tripled’ in 2018 so far – CRYPTOTIMES.MOBI

[…] the high profile Coincheck hack back in January, the Japanese Financial Services Agency (FSA) stepped up its efforts to regulate cryptocurrency […]

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Crypto theft cases in Japan ‘tripled’ in 2018 so far | Bitcoin price media

[…] the high profile Coincheck hack back in January, the Japanese Financial Services Agency (FSA) stepped up its efforts to regulate cryptocurrency […]

Your comment is awaiting moderation.

Crypto exchanges in South Korea now insurable for hacks – CRYPTOTIMES.MOBI

[…] Aside from the $480-million Mt Gox hack of 2014, there was the theft from Japanese exchange CoinCheck worth over $500 million. As secure as the underlying blockchain technology of cryptocurrencies may […]

Your comment is awaiting moderation.

Crypto exchanges in South Korea now insurable for hacks | Bitcoin price media

[…] Aside from the $480-million Mt Gox hack of 2014, there was the theft from Japanese exchange CoinCheck worth over $500 million. As secure as the underlying blockchain technology of cryptocurrencies may […]

Your comment is awaiting moderation.

Japan puts more pressure on crypto exchanges – CRYPTOTIMES.MOBI

[…] stricter registration process comes after the January hacking of Coincheck, which lost a total of 523 million NEM tokens (XEM) worth $528 million at the time. This was larger […]

Your comment is awaiting moderation.

Japan puts more pressure on crypto exchanges | Bitcoin price media

[…] stricter registration process comes after the January hacking of Coincheck, which lost a total of 523 million NEM tokens (XEM) worth $528 million at the time. This was larger […]

Your comment is awaiting moderation.

Japanese crypto exchanges face government action over lack of AML policies – CRYPTOTIMES.MOBI

[…] JVCEA was created in March, in part to overcome a lack of investor confidence stemming from the Coincheck hack that occurred several months earlier. The group is made up of 16 government-licensed cryptocurrency exchanges, and is overseen by Money […]

Your comment is awaiting moderation.

Japanese crypto exchanges face government action over lack of AML policies | Bitcoin price media

[…] JVCEA was created in March, in part to overcome a lack of investor confidence stemming from the Coincheck hack that occurred several months earlier. The group is made up of 16 government-licensed cryptocurrency exchanges, and is overseen by Money […]

Your comment is awaiting moderation.

Kraken announces withdrawal from Japan | E-Bitcoin News Portal

[…] the recent high-profile NEM token theft from Coincheck in January, and concerns from SBI Virtual Currencies over cyber security that saw them postponing the launch […]

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Coincheck Repaying Starts Worth $530 Million – Crypto-Currency Analysis

[…] promised to pay the 260,000 users affected in what was considered as the biggest theft in world history, effectively dethroning the […]

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Coincheck starts refunding clients affected by $530M NEM heist – Digital Coin Owner

[…] promised to pay the 260,000 users affected in what was considered as the biggest theft in world history, effectively dethroning the […]

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Coincheck starts refunding clients affected by $530M NEM heist – bitcoincurrent

[…] promised to pay the 260,000 users affected in what was considered as the biggest theft in world history, effectively dethroning the […]

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Coincheck starts refunding clients affected by $530M NEM heist – CRYPTOTIMES.MOBI

[…] promised to pay the 260,000 users affected in what was considered as the biggest theft in world history, effectively dethroning the […]

Your comment is awaiting moderation.

Troubled Coincheck exchange gets on-site visit from FSA regulators - Coingeek

[…] you recall, Coincheck made history recently after hackers stole around 523 million NEM tokens (XEM), worth JPY58 billion […]

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