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Coincheck Exchange Will Repay Hack Victims

Exchange Hack

Late last week, the largest crypto exchange hack took place. CoinCheck, headquartered in Tokyo, had $530 million USD worth of NEM stolen from the exchange. The company announced today that it will repay the 260,000 customers that were affected by the hack on its platform. It remains unclear as to where the company is getting this money but it claims repayments will come directly from their own funds. Currently, there is no timeline as to when refunds will be distributed. CoinCheck’s website currently reads:

“We would like to offer our sincerest apologies to our customers, other exchanges, and everyone else affected by the illicit transfer of NEM which occurred on our platform. We vow to take action on all of the points listed in the business improvement order handed down from the Financial Services Agency as we work towards resuming normal business operations. Currently, we have suspended various features of our platform including new registrations. Thank you for your patience and understanding.”

>>What was the Impact of the Coincheck Hack?

This is the largest cryptocurrency hack, to date. It passed the infamous Mt. Gox debacle of 2014 that claimed $400 million in Bitcoin (BTC). The NEM foundation, the creator of the XEM, has traced the hacked cryptocurrency to an unidentified account. Currently, the perpetrators are trying to distribute the large numbers of coins onto six different exchanges in order to sell them. Currently, the foundation is in communication with said exchanges and hopes to halt the transfer. The amount of XEM the hackers now hold currently takes up about 5% of the total supply.

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Coincheck will repay its affected users a rate of 88.549 JPY, per XEM coin. That is around $0.81 USD. Each user will lose around 9% of what they originally owned value-wise in the cryptocurrency. However, it is better than nothing; in other previous exchange hacks, users weren’t paid back.

Since 2011, there have been close to three dozen cryptocurrency exchange heists.

Featured Image: ColourBox 

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About the author

Alma W. Hendon

Alma W. Hendon got into Bitcoin while completing his Master's degree and hasn't looked back since, writing about anything crypto-related which makes him sit up and pay attention.

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