Coincheck Refunds Clients Affected by Hacking

Crypto-exchange Coincheck delivers on its pledge to $430 million worth of stolen NEM.

Coincheck Refund

Around 260,000 clients affected by the hacking received refunds on March 12, 2018. Coincheck finished the payment and promised a return to regular operations soon.

Coincheck engages in buying, selling, and trading of bitcoins and altcoins through its cryptocurrency exchange.

• Read more: Investors Sue Coincheck Over Lost of Crypto Due to Hacking Incident

The company pledged to pay 88.549 JPY per token to its affected customers. This rate is greater than today’s NEM’s XEM to JPY conversion. The exchange refunded around $430 million worth of NEM coins. Coincheck used its own capital for the settlement.

FSA and Operations

Japan’s Financial Services Agency tightened its grip on exchanges after the hacking incident. In a routine check, the regulator suspended other currency exchanges in Japan for their clear lack of security.

• Read more: Japan’s FSA Probes if Coincheck Can Pay the Stolen Funds

In a press conference after the hack, Coincheck admitted using hot wallets to keep altcoins. Bitcoins are stored in cold wallets. The exchange also admitted not using NEM’s multisig feature, which could have prevented the hack from happening.

At the time we write this, Coincheck resumes its withdrawal services. Depositing to Coincheck accounts are still suspended.

Source: NewsBTC