The $500 Million Hack Has Made Coincheck ‘Unsure’ About Reopening

According to some local sources, Coincheck, which is the major Japanese crypto exchange known for the $500 million hack that it suffered this January – is still unsure about reopening its exchange. This is what makes the news today in our crypto news section.

According to the claims of one cryptocurrency miner and an analyst based in Japan, the president of the exchange reportedly said that he “does not know the prospectus of reopening.”

Meanwhile, Coincheck is famous for suffering the largest security breach in history of cryptocurrency – one that made it lose more than $500 million in XEM which is the native currency of the NEM blockchain – to a (still) unknown group of hackers.

Due to its inability to compensate all of the investors affected by the hack, Coincheck reached a deal with Monex which is a local and publicly listed company in Tokyo with the aim of obtaining sufficient funds and refunding its investors.

Currently, the platform is unable to accommodate new users until the Japanese Services Agency (FSA) which is the country’s main financial watchdog – grants a license to the exchange to operate as a fully regulated and compliant exchange.

Even though the exchange dropped 66% in terms of its revenue, the company has apparently been able to record some revenues from their existing investors.

“Since service suspension in January 2018, Coincheck only allowed existing customers to sell their cryptocurrency. This limited revenue stream resulted in segment loss of ¥ 0.6 B [around $5.3 million]. Coincheck has improved in governance, internal control and internal audit, aiming for full service resumption.”

Coincheck will still be able to reopen if it can demonstrate to the FSA that the exchange has conducted a complete overhaul of its previous internal management system and its security measures.