Coincheck Begins NEM Refunding and Resumes Trading

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According to two press releases published today, Coincheck announced it has started refunding NEM that were stolen last month in a hack worth of more than $530 million and resume partial trading with the following cryptocurrencies: Ethereum (ETH), Ethereum Classic (ETC), Bitcoin (BTC), Bitcoin Cash (BCH), and Ripple (XRP).

Last week, the cryptocurrency trading exchange announced it will start refunding NEM to its customers this week, and every user should be refunded by the end of the present week. It will be paid in Japanese yen at the rate of approximately $0.83 for one NEM.

Coincheck’s heist brought Japan’s cryptocurrency industry to form a self-regulating body. Also, Japan’s Financial Services Agency (FSA) conducted an on site inspections of 15 unregistred cryptocurrency exchanges located in Japan and closed two of them. The FSA also sent  punishment notices to 7 cryptocurrency exchanges, ordering them to stop transacting together.

During Coincheck’s press release, the company emphasizes on the business-improvement order given to them by the FSA: 

“We will solemnly and seriously take the measures we take carefully and will deeply reflect on ourselves and will drastically review our internal control system and management control system and will review the management strategy that thoroughly protects customers.”

The NEM were stored on a low security wallet, which gave hackers the opportunity to take the funds when they were able to steal the private key.

According to local news Nikkei Asian Review, many Coincheck’s employees received a message earlier in January that seemed to be coming from a colleague, but it was in fact a virus that enabled the platform to be managed from outside of the company.

 

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