Coincheck to Pay $422 Million to Users Affected by Hacking

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Just a day after hackers stole NEM tokens at Coincheck, the Japanese cryptocurrency exchange announced plans to compensate all lost NEM tokens.

Coincheck Reimburses Users with Stolen NEM Tokens

In a press release, Coincheck detailed its reimbursement policy for users who lost NEM tokens during the hacking that occurred on January 26, 2018.

A total of 523 million XEM (NEM Tokens) will be reimbursed to approximately 260,000 Coincheck users. That’s a total of around 46 Billion Yen that will be refunded ($422M).

Coincheck will pay affected users in JPY. The calculation method is based on the value of NEM in JPY (88.549 JPY). This means that if you lost 10,000 XEMs, then you will be reimbursed 885,490 JPY ($8,137).

Coincheck the money will come from its own funds. The schedule of the reimbursement is not yet announced.

NEM’s Response

In the meantime, the NEM Foundation created a system that would trace the stolen NEM Tokens across the exchanges. The exchange will be alerted if a tainted NEM token arrives in its platform. NEM said the money has not moved as of now.

Hacked Friday

The hacking, said to be bigger than Mt. Gox, happened last January 26, 2018.

In a media statement, Coincheck revealed it took hours for the company to notice the hacking of NEM tokens within its platform. Coincheck initially suspended NEM deposits and then went on to suspend trading of all cryptocurrencies except bitcoin.

The conference also revealed a number of vulnerabilities within the Coincheck platform. Most important was the fact that they did not use multi-signature for NEM, something that was offered by the NEM Foundation to them in the first place.

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Michael Mislos

A business ad graduate from the Pamantasan ng Lungsod ng Maynila, Mike is the website manager of Bitpinas.com. He is responsible for almost every content you see on the site, from topic/news selection to editing of articles. Mike believes correct information about blockchain and cryptocurrency can empower people to make accurate decisions about the industry, which, in turn, should deter bad actors from taking advantage of crypto & blockchain. [Telegram @mikemislos]

Michael Mislos
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