Virtual Currency Exchange Coincheck Loses ¥58 Billion to Hacking (News)


Tokyo, Jan. 26 (Jiji Press)—Some ¥58 billion worth of the cryptocurrency NEM has leaked out of major Japanese virtual currency exchange Coincheck due to hacking, the exchange's operator said Friday.

The operator, Coincheck Inc., did not disclose the numbers of affected customers and accounts, saying that it is now investigating the matters. The exchange suspended deposit withdrawals by customers for all virtual currencies it handles, including NEM and bitcoin.

The problem at Coincheck is the biggest ever involving any cryptocurrency in terms of the amount of money affected, eclipsing the 2014 case in which bitcoin exchange Mt. Gox lost some ¥47 billion.

At a press conference in Tokyo late Friday night, Wada Kōichirō, president of the operator, offered an apology and stated his intention to speed up work to find the lost customer assets and determine the cause of the incident.

He said that the operator is considering compensating affected customers. Asked about a possible problem in the exchange's security system, Wada said, "We've done all we can to protect our customers."

Coincheck May Be Slapped with Business Improvement Order

Tokyo, Jan. 28 (Jiji Press)—Japan's Financial Services Agency is looking at issuing a business improvement order soon to virtual currency exchange operator Coincheck Inc. over the loss of massive customer assets due to hacking late last week, informed sources said Sunday.

The order would be issued under the revised law on fund settlement.

Later on Sunday, Coincheck planned to make reports to the FSA on the damage from unauthorized access to its computer system and its policy of compensation to customers.

The FSA could order the Tokyo-based company to suspend some of its business operations, according to the sources.

On early Sunday, Coincheck said it plans to refund about ¥46.3 billion to all of the roughly 260,000 customers who lost their NEM cryptocurrency assets managed in the exchange. The value of the stolen customer assets has fallen from the initially estimated ¥58 billion due to drops in the market price of NEM.

[Copyright The Jiji Press, Ltd.]

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