Coincheck To Reimburse $424million To Its Customers

Japanese crypto exchange Coincheck was hacked a few days ago, which saw over 58 billion yen of NEM coins stolen. This is equivalent to over $533million USD, and forced the exchange to shut down all withdrawals except for Bitcoin. Yet, just this week, Coincheck announced that it would be reimbursing its customers approximately $425million to those who had been affected by the hack. This is out of the ordinary, as usually when a cryptocurrency exchange is hacked, users lose money and just have to accept it. The recent hack was a particularly large one, but the fact that the exchange is paying money back to its users is certainly a light at the end of an otherwise very dark tunnel. Although the amount to be repaid is only approximately 90% of what was stolen, it is certainly better than losing it all. The Coincheck Blog addressed this matter, saying; “We realise 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.” The funds will be made in JPY coins and paid into a Coincheck wallet, although final details of how and when this will happen have not yet been determined. The amount that is being repaid has been based on the weighted average of NEM, constituting from the prices from the suspension of new purchases to the time of the reparation announcement. They are saying though that another stink is likely to be waiting for the crypto exchange. The Japanese Financial Services Agency is considering setting a fine for the hack, due to the fact that exchanges that operate in Japan are supposed to have adequate security to prevent hacks like this one from happening. Image Source: Pixabay Sponsored by