![]() ![]() One unit of NEM was trading at 95 cents at around 0730 GMT on Monday, according to. I think they lacked fundamental knowledge or common sense,” he said. Japan’s Finance Minister Taro Aso told parliament on Monday that the government would take “necessary administrative measures, including an on-site inspection.”Ĭoincheck “did not store the important things separately. “While examining the cause of the incident and taking necessary measures, we want the ministries and agencies concerned to urgently study what further measures we’d need,” the top government spokesman said. ![]() The agency will supervise Coincheck to ensure the measures are being implemented and contracts are being honoured, Chief Cabinet Secretary Yoshihide Suga said at a regular briefing. The watchdog added that it was carrying out checks at other exchanges in the wake of the theft to detect potential security problems. The FSA said at a briefing Monday that it was checking to ensure Coincheck had the ability to make those refunds. In this picture taken on late January 26, 2018, Coincheck president Koichiro Wada (L) bows in apology at the beginning of a press conference in Tokyo. The company said it would reimburse customers in yen, not cryptocurrency. The financial watchdog told the exchange to respond to the orders by February 13, warning that the agency would raid its office if necessary.Ĭoincheck has said it will use its own funds to reimburse about 46.3 billion yen (around $430 million) - at a rate of 88.549 yen per NEM - to all 260,000 customers who lost their holdings. The Financial Services Agency (FSA) said in a statement that it had ordered Coincheck to investigate the cause of the incident, “properly” deal with clients, strengthen risk management and take preventive measures. Units of the cryptocurrency NEM worth $530 million were taken - based on the exchange rate on Friday - exceeding even the $480 million in bitcoin stolen from the MtGox exchange in 2014.Ĭoincheck suspended trading of all cryptocurrencies except bitcoin on Friday, and said it had lost 523 million units of NEM, the 10th biggest cryptocurrency in the world based on market capitalisation. Eoh Kyung-hoon, leader of a club studying cryptocurrencies, checks a chart after a meeting at a university in Seoul, South Korea.(REUTERS File) ![]() On Twitter, Facebook, Google News, and Instagram.Following the biggest cryptocurrency heist in recent times, Japan on Monday imposed sanctions on virtual currency exchange Coincheck after hackers stole hundreds of millions of dollars in digital assets from the Tokyo-based firm. Rival tokens also slipped, with Ripple, Ether and Litecoin declining at least 1 percent.įollow HT Tech for the latest tech news and reviews, also keep up with us They have since climbed back above $10,000. Coincheck said it would still move forward with its application to secure a license.īitcoin slipped to a low of $9,523 on Thursday in Tokyo, extending overnight losses, according to prices compiled by Bloomberg. The FSA has come under fire for allowing 16 exchanges, including Coincheck, to operate while they await a decision on their applications under a revised licensing system introduced last year. Otsuka said Coincheck will comply with the order. The government watchdog told Coincheck to revise its management structure, improve anti-money laundering procedures and submit a report by March 22. Still, with NEM trading at such a steep discount since the January attack, that means the hackers now own a stash worth considerably less than what the victims stand to receive in compensation.Įarlier on Thursday, the Financial Services Agency ordered Coincheck to make further improvements and penalized six other exchanges. NEM prices rose as much as 7 percent after the exchange said it will start compensating users. Since the theft, NEM prices have plummeted and were trading at about 30 cents before Coincheck's announcement on Thursday. Koichiro Wada, chief executive officer, said the exchange made enough money from spread trading to fund the payback, which amounts to 88.549 yen for each of the 523 million stolen NEM coins. Two days after the hack, Coincheck announced it would use company funds to reimburse all of those who lost money in the theft. Customers have withdrawn about 60 billion yen ($566 million) in cash since the incident, he said. ![]() Yusuke Otsuka, Coincheck's chief operating officer, told reporters that the exchange has bolstered its security measures and is working to compensate users. Read more about how $500 Million in digital currency might be laundered. ![]()
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