Hacked Exchange Coincheck Refunds Customers

Coinmama: Buy Bitcoin with Credit Card

Coincheck, the Japan based crypto exchange that was recently hacked, said on Tuesday that it had refunded more than $440 million to customers. All 260,000 of them.

The process began and finished on Monday.

The company used its own funds to reimburse about 46.6 billion Japanese yen to customers who lost their holdings of NEM, a leading cryptocurrency that was stolen in the hack — one of the largest ever thefts in the crypto world.

Exceeding the $480 million stole in Bitcoin back in 2014 from another Japanese exchange, Mt. Gox.

Japan is one of the most crypto friendly nations on the planet, with as many as 10,000 business in the country said to be accepting Bitcoin.

Thieves made away with 523 million units of the cryptocurrency on January 26, then valued at $547 million, after the internal systems at Coincheck were breached as a result of several staff members opening emails containing malware.

Coincheck Logo

Yusuke Otsuka, the chief operating officer, admitted last week that the firm had failed to upgrade its systems to keep up with the rapid expansion of the cryptocurrency market.

Authorities had raided its offices last month, slapping the company with sanctions.

In a blog post, the company revealed that it will refund users at the rate of ¥88.549, which translates to $0.83 per NEM token. This is higher than the current market rate, but lower than the ¥110 value at the time of the hacking.

All customers who held the token at the close of January 26, Japan time, have received compensation.

Additionally, Coincheck also announced that it is restating trading and withdrawal of several cryptocurrencies, starting with the most popular ones like BTC, BCH, ETH, ETC, XRP and LTC.

Services for other digital currencies will resume shortly.

Good going from Coincheck, with the company navigating the problem fairly well. It made a promise in under two days that it will refund users. And now we simply have the confirmation and reassurance that the exchange is legitimate and looks out for the users.